The wholesale revenues came primarily from the mobile

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Unformatted text preview: ncreased by 1%, as strong growth in handset and wholesale revenues more than offset the reduction in ARPU. The wholesale revenues came primarily from the mobile service provider Onfone which exited Telenor’s network in September 2011. As a result of continuous price pressure in the broadband market and a decrease in the number of subscriptions, revenues in the fixed line operation declined by 14%. The EBITDA margin before other income and expenses improved by 1 percentage point, bringing it to 25%, due to lower handset subsidies and increased wholesale revenues combined with cost saving activities. The decline in capital expenditure was mainly due to high investments in 2010 related to the acquisition of 2.6 GHz spectrum in May 2010. In June 2011, Telenor and Telia entered into a network and spectrum sharing agreement for 2G, 3G and 4G in Denmark through a joint infrastructure company. /page 07/ telenor annual report 2011 report from the board of directors 2011 Broadcast In the Nordic market for TV services, Telenor Broadcast maintained its leading position in 2011. Revenues grew by 1% up to NOK 7.1 billion, mainly due to a full year of operation in Norkring Belgium. EBITDA margin before other income and expenses in 2011 was 27%, an increase of 3 percentage points compared to 2010. This increase was mainly related to lower costs in Canal Digital DTH (Direct to Home). Capital expenditure decreased mainly due to lower investments in terrestrial transmission networks in Norkring. In early 2011, Telenor decided to invest in a new expansion satellite, which is expected to be ready for launch towards the end of 2013. The satellite will provide much-needed growth capacity for TV services, specifically in Central and Eastern Europe. The satellite has additional capacity that allows Telenor Satellite Broadcasting to strengthen its maritime service proposition by providing data communication services in areas such as the North Sea and the Baltic Sea. Central and Eastern Europe Telenor’s number of mobile subscriptions in the region increased by 60,000, reaching 7.0 million by the end of 2011. The growth was contributed by Telenor in Serbia. Hungary The Hungarian macro economic situation remained challenging in 2011, putting pressure on retail sales and household consumption. In spite of this, there is an increasing demand for mobile Internet and smartphones. At the end of 2011, 15% of Telenor’s customers were smartphone users. Telenor experienced a 3% revenue decline in local currency resulting in total revenues of NOK 4.5 billion, mainly due to continued reduction in interconnect and roaming fees, as well as reduced revenues from own subscriptions following the general economic pressure. This was partly compensated by growth in non-mobile revenues. EBITDA margin before other income and expenses in 2011 was 34%, a decrease of 2 percentage points compared to 2010. The decrease was mainly related to higher handset subsidies and higher operating expenses. The EBITDA margin both in 2011 and 2010 is negatively affected by approximately 6 percentage points due to the crisis tax levied upon the telecommunication industry in Hungary for the years 2010-2012. The increase in capital expenditure was mainly related to the mobile network modernisation that will be completed early 2012. In December 2011 Telenor acquired an additional amount of 2x1.8 MHz in the 900 MHz band during an auction, thereby enabling the possibility to launch 3G services in the 900 band. Serbia After the Serbian economy started to recover in second half of 2010, the telecom market has experienced good growth throughout most of 2011. Towards the end of the year, there have been signs of worsening macroeconomic conditions. Competition in the mobile market has focused on attractive handset subscriptions. At the end of 2011, 15% of Telenor’s customers were smartphone users. Telenor has increased its market share and built a solid subscriber base increasing the share of contract subscriptions. Revenues in local currency increased by 12% to NOK 2.9 billion, driven by a larger subscription base, 7% growth in ARPU due to increased average usage, as well as higher interconnect revenues. The EBITDA margin before other income and expenses increased by 2 percentage points to 42% in 2011 as a result of revenue growth and cost efficiency measures. The increase in capital expenditure was mainly related to the network modernisation that was completed in January 2012. Montenegro The mobile market in Montenegro was stable in 2011. Telenor’s revenues in local currency were in line with 2010, corresponding to NOK 0.6 billion. EBITDA margin before other income and expenses in 2011 was 45%, in line with the margin of 2010. In November 2011, Telenor was the first operator in Montenegro to launch 4G services. At the end of 2011, 13% of Telenor’s customers were smartphone users. /page 08/ telenor annual report 2011 report from the board of directors 2011 A sia Telenor Group’s Asian operations added 29 million subscriptions...
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This document was uploaded on 03/21/2014.

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