Editor | 24-07-2013
The TV and video business of Scandinavian communications giant Telenor has shown steady gains overall in the second quarter of 2013.
As an overall corporate entity, the Telenor Group reported revenues of NOK25.7 billion, representing an organic revenue growth of 2%. EBITDA before other items was NOK8.86 billion, EBITDA margin was 34%, and operating cash flow was NOK5.37 billion.
For its broadcasting business — including the Norkring, Conax and Canal Digital businesses — growth was a little less marked. The broadcast unit showed total revenue growth of 1%, mainly caused by increases in the aforementioned LOBs. Total EBITDA increased by 11% and the EBITDA margin by three percentage points.
The core Canal Digital DTH broadcast offering, which competes in a very competitive regional market now including over-the-top players such as Netflix Nordic, increased takings by a meagre 1% as higher average revenue per customer and currency effects were only partly offset by reduced hardware sales and effects of a lower DTH subscriber base which declined from 952,000 to 945,000. That said, the line's EBITDA margin was 18% and four percentage points higher due to reduced content and operating cost.
Revenues in all satellite broadcasting decreased by 1% mainly due to the phase-out of the Thor 2 satellite. EBITDA decreased by 4% due to higher operating costs.
Revenues in the Conax conditional access and security business, which celebrated a number of key wins in the quarter, increased by 14% due to more smart card sales. Conax's EBITDA remained stable as operating cost increased and more sales in low price markets resulted in declining average price and gross margin per card.