Telenor’s Revenue Dips But Profit Remains Stable
PARIS — Satellite fleet operator Telenor Satellite Broadcasting of Norway on Oct. 24 reported lower revenue but a stable gross profit margin as it cut operating costs.
Oslo-based Telenor said that despite the strength of the U.S. dollar and British pound against the Norwegian kroner, the company’s revenue slipped by 8.1 percent, to 242 million kroner ($42.2 million), for the three months ending Sept. 30. Telenor said lower broadcasting revenue and ground services accounted for the overall drop.
EBITDA, or earnings before interest, taxes, depreciation and amortization, decreased by 7.2 percent in kroner terms but was 70 percent of revenue, up from 69 percent a year ago.
Telenor said it booked an unusually large amount of occasional-use business, mainly from broadcasters of sporting events including the Summer Olympics, the Euro 2012 soccer championship and the Tour de France.
In response to SpaceNews inquiries, Telenor said Oct. 25 that construction of its Thor 7 telecommunications satellite, which is equipped with a Ka-band payload for high-speed data communications to maritime customers, is on track and the satellite is scheduled to enter operations in 2014.
The third-quarter decline in capital spending, Telenor said, was due to slight delays on small infrastructure-upgrade projects, in part because of the summer holiday. Spending will pick up in the fourth quarter, the company said.