Kroner Appreciation Impacts On Telenor Performance

Much of Norwegian operator Telenor's recent success has come from its emerging market operations, particularly in Bangladesh and Pakistan. However, the carrier recorded a 1% y-o-y decline in its third quarter earnings for 2007, mainly as a result of the recent appreciation of the Norwegian kroner, and partly due to increased competition in some of its markets. The report does not include results from Ukraine, a recent success story for Telenor, with injunctions caused by a continuing legal battle with fellow shareholder Russia's Alfa Group preventing it from releasing financial information about the operator. Telenor is keen to note that taking into account estimates from Ukraine and the continued good performance of mobile unit Kyivstar, overall revenue growth during the quarter was actually 12% y-o-y. Indeed, as seen in the facing graph, Kyivstar recorded estimate revenues of NOK3.4bn (+12.5% y-o-y) and EBITDA of NOK1.97bn (+8% y-o-y).

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