Higher Phone Usage for Danish Operator

Denmark's Sonofon has reported an increase in its EBITDA margin to 27% on the back of increasing revenues from more mobile customers who are using their mobiles more. The company's broadband internet division, Cybercity also reported strong growth for both revenues and earnings (EBITDA).

"It is satisfactory that both Sonofon and Cybercity have reported solid progress in the marketplace and in their financial results. We have also launched 3G services and fixed broadband connections with speeds up to 20 Mbit/s," says Henrik Clausen, CEO Sonofon and Cybercity.

Sonofon's Q3 revenues were up 4% at DKK1,325 (US$177) million. Numbers of mobile customers grew by 41,000 to 1,583,000 which includes wholly owned CBB Mobil and wholesale customers. Q3 earnings (EBITDA) were up 25% on Q3/2005 at DKK362 (US$48.6) million. The increase in earnings is the result of more customers with higher usage combined with greater operational efficiency.

"The positive results reflect the fact that we have made progress in our private and business sectors with customers now using their mobiles for more than two hours a month on average. We have also enjoyed the benefits of scale from the common organization for Sonofon and Cybercity," says Henrik Clausen.

During the quarter, Sonofon launched 3G mobile telephony services in the largest Danish cities and towns and will be continuing the roll out process and with setting up 500 WLAN hotspots in airports, hotels, conference centers and railway stations across the country."

Posted to the site on 30th October 2006