Telenor maintained stable revenue growth in the second quarter following rapid growth in its overseas markets, notably Myanmar.
Sales for the period were up six percent year-on-year on an organic basis to NOK 30.2 billion (€3.4 billion), while profit after taxes stood at NOK 3.6 billion (€404 million), a 56.7 percent increase.
Group EBITDA rose 11.2 percent to NOK 10.6 billion (€1.2 billion), while margins were down two percentage points to 35 percent.
Telenor said its business in Myanmar, where it launched services for the first time last September, had exceeded expectations after it pulled in 3.1 million new subscribers during the quarter.
EDITDA there swung to NOK 479 million (€53.8 million) from a loss of NOK 83 million (€9.3 million) 12 months ago, with reported revenues reaching NOK 1.1 billion (€123 million).
Meanwhile dtac, Telenor’s Thai opco, reported revenue growth of 26.8 percent, pulling in NOK 5.1 billion (€573 million).
Outgoing CEO Jon Fredrik BaksaasOutgoing CEO Jon Fredrik Baksaas commented: “dtac is going through a comprehensive turnaround process, which on the network side has already resulted in a significantly improved network position on both 3G and 4G.
“The ongoing transformation of dtac’s sales and distribution model is key for future success in this competitive market.”
Pakistan and Bangladesh saw sales increase by 13 percent, 25 percent and 30 percent respectively.
In Telenor’s home market, revenues increased 1.5 percent to NOK 6.6 billion (€741 miillion) as increases in APRU and handset sales drove data growth.
The operator said median data usage increased by 125 percent year-on-year, with 72 percent of subscribers described as “active data users”.
Baksaas said: “In Norway, the mobile trends seen over the last quarters persisted during the three months through June. The increasing mobile data consumption is supported by strong growth in 4G coverage and 4G devices. We are continuing to expand our 4G network across the country targeting 95 per cent population coverage by the end of this year.”
Sales in Sweden sat at just under NOK 3 billion (€337 million), representing a year-on-year growth of 5.6 percent.
Although subscriptions decreased by 7,000 during the quarter, this was offset by higher handset sales, Telenor said.
Similarly in Hungary, sales were up a marginal 0.48 percent despite the loss of 9,000 subscribers, thanks to higher traffic revenues.
Group capex rose 38.3 percent to NOK 6.6 billion (€741 million).
Following the result, Telenor reaffirmed its 2015 outlook of revenue growth of between 5-7 percent and EBITDA margins in the range of 34-36 percent.