OSLO, Norway--(BUSINESS WIRE)--Telio had a good start on 2014 with a strong first quarter. Revenues for Telio Group in the first quarter ended at NOK 322.4 million and EBITDA was NOK 76.8 million.
- The first quarter represents a good start of the new year. 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 76.8 million and EBIT was NOK 47.1 million (EBIT adjusted for amortization costs of NOK 9.6 million related to the acquisition of NextGenTel AS). Profit after financial items is negative due to non-recurring costs related to refinancing of debt.
The major restructuring of NextGenTel was finalized during Q4 2013. Minor adjustments and optimization of the organization will continue in 2014.
In the first quarter, NextGenTel announced a contract with TeliaSonera to deliver fiber to TeliaSonera’s locations in Norway, including the NetCom shops. With this contract, NextGenTel further strengthens its position within the retail stores segment. The company currently provides broadband accesses to twenty thousand businesses making NextGenTel one of the largest players within broadband to retail stores and other enterprises in Norway.
New contract in the Netherlands
In January, Telio announced a new contract to provide VoIP services to M7 customers in the Netherlands. M7 operates in the Netherlands with a.o. the brand Canal Digitaal. During 2014, Telio Netherlands will start providing all VoIP services for their Dutch customers. This includes the migration of the voice services of all existing customers (currently approximately 120,000 customers). An intention has been expressed by both M7 and Telio to also look into providing VoIP services to other M7 customers across Europe.
The bondholders' meeting held on 5 February 2014 voted in favor of the company's proposal for an early redemption of the bond. The NOK 300 million bond was repaid at 109.50% of par value plus interest on 7 March 2014. The company has agreed on new loan facilities with Nordea. The new financing comprises a five year term loan of NOK 250 million and a NOK 75 million overdraft facility, replacing the current bank loan of NOK 175 million. The reduced financial expenses following the new loan facilities will offset the call premium for the bond within approximately 24 months and the new financing reduces financial expenses by approximately 60% (NOK 56 million) over the loan term. Altogether, this financial restructuring including less strict financial covenants makes it possible for Telio to pay dividend already in 2014 based on the 2013 annual accounts. The board has proposed a dividend of NOK 2 per share.
In the first quarter 2014, the Telio Group achieved revenues of NOK 322.4 million compared to NOK 260.7 million in the year-ago quarter. EBITDA was NOK 76.8 million (23.8% EBITDA margin) compared to NOK 52.4 million (20.1 % EBITDA margin) in the same quarter last year. Operating profit ended at NOK 47.1 million compared to NOK 27.6 million in the first 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 Q1 2014 at:
Download high definition pictures of CEO Eirik Lunde at http://telioholding.no/News-and-media/Logos-and-pictures
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