Fornebu, Norway (BBN)- Telenor ASA, the Nordic region’s largest phone company, reported earnings that topped analysts’ estimates as gains in Bangladesh and Pakistan offset slowing growth in Malaysia and Thailand.
Third-quarter adjusted earnings before interest, taxes, depreciation and amortization rose to 11.8 billion kroner (US$1.39 billion), or 37.2 per cent of sales, the government-controlled Norwegian carrier said in a statement Wednesday.
Analysts predicted 11.4 billion kroner on average, reports the Bloomberg.
The carrier plans to pay a semi-annual dividend of 3.5 kroner per share to be paid out Nov 2.
Telenor is counting on stable domestic growth as profits decline in Thailand, its second-largest market, and after the carrier failed to merge its Danish operations with those of Swedish rival TeliaSonera AB.
Chief Executive Office Sigve Brekke plans to sell Telenor’s 33 per cent stake in Vimpelcom Ltd., the Russian operator being investigated by authorities over connections to alleged bribes in Uzbekistan.
Telenor took a charge of 5.4 billion kroner in the quarter related to the divestment.
Sales rose 15 per cent to 31.8 billion kroner, topping the 31.6 billion kroner average estimate.
Telenor said it expects an adjusted Ebitda margin of 34 per cent to 35 per cent and organic sales growth of around 5 per cent this year, excluding acquisitions, divestments and currency fluctuations.
The guidance now includes the Danish operations.
Bangladesh-based Grameenphone saw its Ebitda jump 27 per cent to 1.43 billion kroner in the quarter, while profitability slipped 8.2 per cent in Thailand after that unit lost 2 million subscribers in the period.
Malaysian Ebitda fell 3.3 per cent to 1.51 billion kroner.
The stock has climbed 13 per cent this year, valuing the carrier at 256 billion kroner.
BBN/SK/AD