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TV businesses shine for Telenor
Joseph O'Halloran ©RapidTVNews | 22-07-2010
Norwegian communications incumbent Telenor has reported soaring profits in its financial results for the second quarter of 2010 which also highlight the highly positive contribution of its TV business lines.Telenor reported that Q2 net income increased to NOK9.49 billion from NOK1.38 billion for the same period in 2009. Asian sales were the main driver of the improved profits with revenues advancing by 13%, with Thailand, India and Malaysia displaying markedly improved growth.
In its broadcast business, Telenor's Canal Digital Group posted revenues of NOK 1.699 billion, a 4% rise on the sales for the same period twelve months earlier and half yearly sales of NOK 3.381 billion representing a 3% climb. The division posted very strong profits in the first six months of 2010. It reported a quarterly profit of NOK 143 and half yearly profit of NOK 268, impressive increases of 21% and 60% respectively.
Telenor's attributes Canal Digital Group's revenues and profits mainly to higher sales of additional services for cable and increased prices for DTH. Even though it added 5000 cable TV internet access subscribers during the quarter, Telenor's DTH subscribers decreased by 15,000.
On 11 May 2010, Telenor Media & Content Services AS acquired 35% of the shares in C More Group AB for a consideration of NOK 1.1 billion. The net cash payment was approximately NOK 0.6 billion, as certain sports rights owned by Telenor, such as SAS Ligaen and FIFA World Cup 2010 in Denmark, were sublicensed to C More Entertainment. C More Group AB is the leading premium pay-TV company in Scandinavia. Operating through its 100% owned subsidiary C More Entertainment AB, the TV-channel brand Canal+ has more than 1 million subscribers in Scandinavia.
In what will likely further boost revenues, in June 2010 Telenor signed a 3-year agreement with TV 2 for distribution of Premier League matches to cable and satellite subscribers. The service will cover the 2010/2011, 2011/2012 and 2012/2013 seasons.
