Telenor reports fourth-quarter results 2015
In Norway and Sweden, there are solid trends in the mobile consumer segment from increasing data usage and relevant offers. On the fixed side, both operations continued to grow their high-speed internet subscriber base, adding 107,000 connections during the year.
In Thailand, dtac added 400,000 customers during the quarter, with growth both in prepaid and contract segments. While competition remains intense, dtac continued its 3G and 4G network roll-out and has made significant quality and coverage improvements during 2015. Performance in Malaysia was hampered by intense competition on data and international calls, as well as a weakening currency.
Telenor’s operations in Bangladesh and Pakistan show strong performance, both in terms of subscriber growth and profitability. Telenor Myanmar has made impressive progress in its first year of operation, and ended the year with 14 million subscribers.
Impairment loss of NOK 2.1 billion
The outlook for the Danish telecom market remains challenging. As a consequence of updated earnings projections, an impairment loss of NOK 2.1 billion was recognised in the fourth quarter of 2015 in Telenor Denmark.
Dividend proposal of NOK 7.50 per share
Based on the financial results for 2015, the Board of Directors will propose a dividend of 7.50 per share for 2015, to be paid out in two tranches. The proposal is in line with Telenor’s ambition to deliver a year over year growth in dividends.
Outlook for 2016
Telenor expects continued healthy organic revenue growth for the Group in 2016, but fierce competition and headwinds in key markets like Thailand and Malaysia put pressure on EBITDA margin expectations. Investments will continue to be centred on the rollout of high-speed mobile and fixed networks.
Based on this, the financial guidance for 2016 is organic revenue growth in the range of 2% to 4% and an EBITDA margin of 33% to 34%. The capex to sales ratio is expected to be 17% to 19%.