OSLO, Norway (AP) — Telenor's third-quarter net profit rose by 52 percent amid higher revenues, trimmed costs and a lower tax rate, the Norwegian telecommunications group said Wednesday.
The company's report showed third-quarter net profit rose to 2.6 billion kroner ($470 million) from 1.7 billion in the same period a year ago.
Revenue for the quarter increased by 2.2 percent to 24.6 billion kroner from 24.1 billion in the third quarter 2010.
The company raised its outlook for full-year organic revenue growth to 6-7 percent from its previous 5 percent forecast, but reiterated its expectation for operating margin before other income and expenses to be around 31 percent.
The result beat analysts' expectations and Telenor shares climbed 1.7 percent to 134.5 kroner ($24.3) in early trading on the Oslo stock exchange.
"I am pleased to see that in a world of slowing growth and rising risks, Telenor's financial performance continues to improve," Telenor CEO Jon Fredrik Baksaas said.
"Despite global macro economic turbulence and floods in Asia, our operations have so far remained resilient. We adjust our guidance for 2011 based on solid performance the first nine months and expectations for the rest of the year," Baksaas said.
Telenor said the effective tax rate for the third quarter decreased compared to 2010, due to the tax expense provision concerning a claim from Norwegian tax authorities in the third quarter of 2010.
The number of total mobile subscriptions increased by 31,000 during the quarter due to strong growth in mobile broadband and voice subscriptions following the launch of a new consumer mobile product portfolio, Telenor said. At the end of the quarter, the company's mobile subscription base was 1 percent higher than last year.