Telenor has on Thursday presented its results for the fourth quarter, and the period is characterized by the effects related to work at vimpelcom and a major write-down in the Tapad on one billion.
Telenor also arranges capital markets day Thursday.
the write-down occurs just one year after Telenor announced that they bought Tapad by among others the Norwegian company founder, Are Traasdahl for just over three billion.
Telenor justify write-downs with “lower expectations for growth in the us market for digital advertising”.
These come a quarter after Telenor in October announced that they had written down business in India with a further four billion, as well as impairment in work at vimpelcom investment. In 2012, had then-Telenor ceo Jon Fredrik Baksaas stated that the values for 8,1 billion was written down in India.
at the same time, Telenor now delight the shareholders that the dividend proposed to be increased from 7,50 to 7,80 euros per share for fiscal year 2016. The company plans to pay out the amount in two under of 4,30 in may and 3.50 in november.
Profit after tax improved from -2,13 billion to 2,29 billion in the fourth quarter, measured against the same period last year. At this time last year was Telenor-numbers characterized by a large write-downs in the Danish business, but despite the improvement, were not Telenor to meet the analysts ‘ expectation of a profit of 4.1 billion, according to konsensustall from TDN/SME Direkt.
despite a gross operating profit (EBITDA) increased from 44,2 to the full rate of 46.5 billion fall in the surplus for 2016 from a 3.4 to 2.8 billion after tax.
Berit Svendsen has gotten the job she has dreamed of: Now The “tele-queen” collect Scandinavia to a kingdom
Reported earnings per share for the period was 1,89 million, while the result per share, adjusted for, among other work at vimpelcom, writings, other expenses and foreign exchange loss was the entire 9,53 million.
Even if Telenor’s revenues for 2016 increased from 128,2 to 131,4 billion, slowed it up in the fourth quarter, when the company’s turnover fell from 33.5 new to 33,1 billion against the year before. It was expected a turnover of 33.5 new billion now.
Revenue before acquisitions (organic) also fell significantly in the last year, from 4.7 to 1.1 per cent. In the fourth quarter slowed down from 2,3 to 0.6 per cent.
In 2016 continued Telenor to increase sales and we delivered a record EBITDA (gross operating profit, journ.anm.). We made major progress in nettverksutrulling in the course of the year to support our customers ‘increased data usage,” says ceo Sigve Brekke in a comment.
Telenor’s activities on home soil, delivered a turnover of 6.7 billion in the fourth quarter, down a marginal 18 million from the same period last year.
despite the fact that grossistinntektene (rental of web access to other actors) fell from 427 to 368 million, as did Telenor Norway to collect these revenues from mobile, broadband and TV sales.
Gross operating profit (EBITDA) increased marginally from 2,62 to 2,65 billion, while operating profit fell from 1,67 to nok 1.36 billion.
Telenor served an average of 316 million per mobilkunde in the month, up two million from the same period last year.
For the whole of 2016, the 319 million per mobilkunde, down one dollar to 2015.
at the same time falling revenues in 2016 with a half a billion to 26 billion, while gross operating profit was stable at around 11 billion, and with a decrease in operating profit from 7,2 to nok 6.7 billion.
Change utbytteformulering
Telenor also come with their forecasts (guiding) for 2017, which is roughly in line with the nedjusterte forecast Telenor came with in the report for the second quarter in July of last year. When nedjusterte Telenor its original forecast which was released exactly one year ago.
- From the to wait for a revenue growth before acquisitions (organic) at 2-4 per cent on this time last year, nedjusterte one last summer the forecast to 1-2 percent. It keeps you in the now.’
- at the same time nedjusterer the investeringsrammen as a percentage of the turnover of 15-16 per cent. One year ago was the frame of 17-19 per cent, but last summer it was revised downwards to 17 per cent.
- On the other hand, the waiting company a gross operating margin of around 36 per cent in 2017, which is up from 35 per cent from the forecast in last summer for 2016 and up from a forecast for 2016 a year ago at 33-34 per cent.
In addition, the change Telenor now the dividend policy.
the Company is now writing that they have a “goal of an annual growth in the ordinary dividend per share”.
What they also had before, but now dropping to the formulation that the dividend should be at 50 to 80 percent of normalised profit after tax”.
Telenor also opens to use the “buyback of own shares and/or extraordinary dividends considered in certain cases.”
Open for more sales
” Even though Telenor has made great success in many countries, they have engaged in, such as Myanmar, as the company has encountered problems in several countries. The most famous is probably India, where experts estimate that the company so far has spat in the faces of at least 25 billion without getting something in particular again.
But Telenor is struggling also in Denmark, in the same way as rival Telia.
In the børsmeldingen where Telenor wraps up its presentation at capital markets day, it’s revealed that the company is now considering to sell both India and other operations:
– As part of Telenor’s overall focus on simplification and prioritization, the company will continue to seek a solution for the indian business, as well as conduct a review of the other assets of less strategic importance, writes the company.
Telenor does not mention Denmark with the name, but the ceo Sigve Brekke have several times previously made it clear that the company must find a solution in both India and Denmark. Actually, he was hoping to get a solution in India in last fall, but for now see the process to drag out in time, at the same time as it constantly comes rumors in the indian media about a possible sale to other players.
as late as in the beginning of January, it was reported in the Economic Times that Bharti Airtel is considering to buy Telenor’s indian operations for $ 350 million.
at the same time as rumors of good around Telenor, Vodafone this week confirmed that they are working to merge its indian operations with Idea Cellular, which will create India’s largest mobile operator.
Considering fiberutbygging in Asia
In The summary of the capital markets day, it is especially a message of emphasized:
the Case continues below the advertisement.
Telenor will give priority to the improvement of cash flow through the streamlining and prioritisation of resources, writes the company.
president and Ceo Sigve Brekke believes that Telenor must get better at capturing contact with your customers, exploit skalaeffekter in the web and IT their systems and adopt more advanced analysis of customer data (known as “Big Data”).
the Company writes that they also will look at the opportunities to bet on fiberutrulling in the emerging markets in Asia, with base in the mobile networks they already operate.
We have already put this work start through the changes in management as Telenor announced a short time ago.
Rather than to have the commander for each individual country in the group management, have the Break now introduced “clusters” of countries, which will be led by one of the leaders of those countries. It has among other things led to that Norgessjef Berit Svendsen now has been the parent responsible for the whole scandinavian business.
– Our strategy will help to strengthen the company’s cash flow and support our ambition to deliver increasing dividends to our aksjonsære, claims Break.
The specific financial goals until from 2018 to 2020 are:
- To deliver a low single digit prosentvekst in revenue before acquisitions (organic)
- To reduce operating costs by one to three per cent in the year
- To have a basic investment of around 15 per cent of the turnover, before lisensutgifter are included
- To increase the annual dividend level
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