Telenor satisfied with Broadcast performance

Telenor’s Fornebu HQ

Nordic telecom operator Telenor expressed itself satisfied with the performance of its Telenor Broadcast division in the third quarter, despite a decline in revenues as a result of currency effects and a continued slide in subscribers for its DTH TV service.

Total revenues slid buy 1% to NOK1.512 billion (€160 million), with currency impacts leading to a decline in sales for Canal Digital from NOK1.152 billion to NOK1.134 billion. The DTH unit, which lost 11,000 subscribers in the quarter, nevertheless saw its EBITDA rise from NOK246 million to NOK251 million, contributing to an overall increase in EBITDA from the broadcast division of 3% to NOK574 million.

Telenor Satellite saw revenues rise modestly, from NOK223 million to NOK230 million, while revenues at transmission towers unit Norkring were more or less flat, rising from NOK264 million to NOK265 million. The satellite unit’s EBITDA rose from NOK155 million to NOK167 million, while Norkring’s EBITDA slid by NOK1 million to NOK158 million.

Telenor attributed the overall EBITDA growth to lower customer service and marketing costs for Canal Digital. Capex for the broadcast unit was driven by the need to upgrade the digital-terrestrial network in Norway to accommodate the release of 700MHz spectrum for mobile applications.