Telenor sees profit drop in Q3 but raises outlook

AP News
Posted: Oct 27, 2010 7:37 AM
Telenor sees profit drop in Q3 but raises outlook

Norwegian telecommunications group Telenor ASA said Wednesday its earnings dropped 51 percent in the third quarter due to one-time charges, but sales improved and it raised its full-year outlook.

Net profit was 1.7 billion kroner ($290 million), down from 3.5 billion kroner in the third quarter of last year.

Telenor cited losses from the company's recently started operations in India and an 814 million kroner tax provision due to a reassessment of 2006 and 2007 tax returns in Norway that the company plans to appeal.

Revenues rose 5.5 percent, to 24.1 billion kroner from 22.8 billion kroner, and Telenor lifted its outlook, saying it expects organic revenue growth of 5 percent this year. It had previously predicted between 3 percent and 5 percent growth.

Investor optimism about Telenor's outlook improved in the beginning of the week, after the company's affiliates in Malaysia and Bangladesh delivered strong results.

Telenor shares rose 1.1 percent to 92.80 kroner in Oslo.