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Telenor Montenegro's 2013 operating profit drops 12.3% to EUR 21.3mn

February 13, 2014

Norway's Telenor reported on Feb 12 that the operating profit of its Montenegrin unit fell 12.3% to NOK 178mn (EUR 21.3mn) last year with the subscription base declining 6% y/y at end-December over reduced SIM penetration.

Revenues also declined - by 7.4% y/y to NOK 541mn last year and the EBIDTA before other items dropped 12.7% y/y to NOK 214mn.

In the fourth quarter alone, Telenor Montenegro's operating profit shrank 21% y/y to NOK 34mn. Excluding 2012's one-off adjustment, the EBITDA margin decreased by 7pps in the quarter mainly from lower subscription and traffic revenues and increased sales of subsidised handsets, partly offset by reduced interconnect costs and decreased operating expenditures, Telenor said in a statement.

The number of Telenor's customers in Montenegro decreased by 69,000 in Oct-Dec due to seasonal churn somewhat offset by a slight increase in the contact segment. The number of subscribers totalled 374,000 at end-2013, down 6.5% y/y.

Despite the downward trend in business results, Telenor was the leading telecom company in Montenegro with a 38.2% market share at end-2013. The two other mobile operators in the country are T-Mobile, controlled by Detsche Telekom, and M:Tel, owned by Telekom Srbija.

The mobile phone penetration in the country stood at 160.3% at the end of December, up from 159.8% a year earlier but down from end-November's 165.7%.

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Source: IntelliNews - Weekly Reports

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