Telenor Group CEO Jon Fredrik Baksaas today indicated an increase in the telecom operator’s Capex (capital spending) for 2015.
The expected to Capex to sales ratio will be 17-19 percent against 15.8 percent in 2014, 15 percent in Q1 2015 and 14 percent in Q1 2014.
In 2014, the Capex (excluding license) of Telenor was NOK 16,870 million, while it invested NOK 4523 million in Q1 2015 against NOK 3550 million in Q1 2014.
Telenor is also increasing its sales forecast for 2015.
“We are raising our organic revenue growth expectations to 5-7 percent, combined with a stronger EBITDA margin of 34-36 percent. The expected Capex to sales ratio is now seen at 17-19 percent reflecting higher investments in Thailand and Myanmar,” said Jon Fredrik Baksaas, president and CEO of Telenor Group.
Telenor revenues in the first quarter of 2015 rose 7.6 percent to NOK 30.2 billion. While net income was NOK 4.1 billion.
The telecom operator added 5.9 million mobile customers during the first quarter and more than one third of its 190 million subscribers are now active internet users.
Telenor Norway invested in fixed and mobile network infrastructure to meet customers’ demands and expectations for data capacity as well as premium network coverage.
dtac in Thailand plans to accelerate its investment in 3G and 4G network coverage aiming to take a strong market position.
Telenor Myanmar expanded into new areas during the first quarter, added 3 million customers and brought the total number of network sites to more than 1,700. It plans to ramp up network investments to cater for the strong demand for digital services.
Meanwhile, Uninor, the Indian telecom arm of Telenor, said its revenue rose 19 percent in Q1 2015. Uninor said nearly 26 percent of its customers are accessing Internet on their mobile phones.
“Uninor had a strong first quarter with 19 percent growth in revenues and the subscription base being 26 percent higher than the same quarter last year. We have maintained our growth trajectory in voice and Internet services,” said Vivek Sood, CEO, Telewings Communications Services (Uninor).
Uninor is number four in customer market share with over 11 percent of subscribers in the six operational circles at the end of February 2015. Since March 2014, the company has added over 10 million new subscriptions in its six operational circles. Uninor has over 45.5 million subscribers.
Uninor has over 365,000 point of sales and around 1,600 branded retail outlets with another 500 being added in the next nine months of this year.