Norway-based group mobile operator, Telenor posts a net profit of 4.26 billion kroner ($521.79 million) in the first-quarter, up 10.6% from 3.85 billion kroner a year earlier. Mobile subscription and traffic revenue growth remained healthy during the quarter at 6%, while total revenues were impacted by lower handset sales and declining revenues from fixed legacy products. The Operator's EBITDA margin improved one percentage point to 35%.
In the quarter, 5.4 million new mobile subscribers were added, of which 2.2 million were in Pakistan, 1.8 million in Myanmar and 1.5 million in India. The total customer base now stands at 208 million and about 40% are active internet users.
In Myanmar, Telenor further improved its market position and the cash flow was positive after seven quarters of operations. Grameenphone in Bangladesh had a solid performance, with an EBITDA and revenue growth of 12% and 9% respectively. In Pakistan, the positive revenue momentum continued and total revenues increased by 9%.
In Norway, subscription and traffic revenues continued to grow, while total revenues dropped as a result of lower fixed revenues, as well as a decline in interconnect rates and handset sales. The EBITDA margin remained strong during the quarter.
Fierce competition in Telenor's Malaysian and Thai markets continued in the first quarter. Digi reported solid postpaid subscriber growth from stronger data network and new price plans. In Thailand, dtac’s EBITDA margin widened by one percentage point due to lower handset subsidies.
Telenor Group Chief Executive Officer Sigve Brekke
During the first quarter of 2016, Telenor Group delivered 5% EBITDA and 2% revenue growth on an organic basis, and achieved a healthy operating cash flow of more than NOK 6 billion. We connected more than five million new customers as we continue to improve our network and service quality across our footprint.
