Telio delivers 8% growth in EBITDA and announces extraordinary dividend
The Telio Group delivered EBITDA of NOK 76 million for the third consecutive quarter this year. Revenues for Telio Group in the third quarter ended at NOK 316.6 million.
- The first and second quarter represented a good start of the year and we follow up in the third quarter with 8% growth in EBITDA compared to the same quarter last year. The Group generates a strong cash flow in line with targets and will therefore propose an extraordinary dividend. After the acquisition of NextGenTel, we announced that we would not be able to pay dividend in 2014, but due to strong performance the company will, including an extraordinary dividend, have paid NOK 3.25 per share in dividend in 2014. The Telio Group is well positioned to achieve its financial targets for 2014, says Eirik Lunde, CEO of Telio Holding ASA.
EBITDA for Telio Group was NOK 76.3 million and EBIT was NOK 46.5 million (EBIT adjusted for amortization costs of NOK 9.6 million related to the acquisition of NextGenTel AS). Profit after tax was NOK 24.6 million.
NextGenTel
In July, NextGenTel announced an agreement with Bofiber AS to acquire the company's 2,000 fiber customers and to cooperate in building out fiber in the Bergen region. This implies that residents in the Bergen region can be part of the roll-out of fiber and have Internet, TV, mobile and broadband telephony services provided by the same vendor, NextGenTel. Furthermore, many of NextGenTel's current customers can be offered fiber and still keep the Internet and other services from the company. Bofiber will provide the fiber infrastructure while NextGenTel will be the customer interface responsible for sales, delivery, customer services and operations.
The board proposes extraordinary dividend
The board will call for an extraordinary shareholders meeting to propose distribution of an extraordinary dividend of NOK 1.25 per share. Furthermore, the board will ask for a proxy to distribute quarterly dividends going forward.
Financial results
In the third quarter 2014, the Telio Group achieved revenues of NOK 316.6 million compared to NOK 325.8 million in the year-ago quarter. EBITDA was NOK 76.3 million (24.1% EBITDA margin) compared to NOK 70.4 million (21.6 % EBITDA margin) in the same quarter last year. Operating profit ended at NOK 46.5 million compared to NOK 37.0 million in the third quarter of 2013 (EBITDA and operating profit are adjusted for non-recurring items and EBIT is adjusted for amortization cost related to the acquisition of NextGenTel). (NextGenTel is consolidated in the Telio Group from 1 February 2013.)
See financial report and market presentation for Q3 2014 at:
http://telioholding.no/Investor-relations/Reports-and-presentations
For further information, please contact:
Mr. Eirik Lunde, CEO
Telephone: +47 23 62 66 88
Mobile: +47 48 09 69 64
Download high definition pictures of CEO Eirik Lunde at http://telioholding.no/News-and-media/Logos-and-pictures
E-mail: eirik.lunde@telio.no