SYS-CON MEDIA Authors: Greg Ness, Sean Houghton, Glenn Rossman, Ignacio M. Llorente, Xenia von Wedel

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Telio Holding ASA: Strong 4th Quarter Concluded a Successful Year for Telio

Telio (OSE:TELIO) concluded 2013 with a strong fourth quarter both in terms of revenues and profitability. Revenues for Telio Group in the fourth quarter ended at NOK 327.7 million and EBITDA was NOK 73.9 million. For the year 2013 revenues ended at NOK 1.247 billion and EBITDA at NOK 270.3 million.

- 2013 has been a very successful year for Telio with the acquisition of NextGenTel early in the year as the most significant event in the history of the company. The fourth quarter is evidence of a successful turnaround for NextGenTel. The Telio Group is now well positioned to achieve its financial targets for 2014 and the years ahead, says Eirik Lunde, CEO of Telio Holding ASA.

EBITDA for Telio Group was NOK 73.9 million and EBIT was NOK 32.8 million (EBIT adjusted for amortization costs of NOK 11.4 million related to the acquisition of NextGenTel AS).

NextGenTel

NextGenTel has continued the positive development during the fourth quarter and the financial performance is ahead of plan. The company has 100 less FTEs at the end of the fourth quarter than at the transaction date. A cost control program has been established and significant savings have been achieved both in operating expenses and capital expenditures compared to the same period last year.

After quarter-end, 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

After quarter-end, 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 145,000 customers). An intention has been expressed by both M7 and Telio to also look into providing VoIP services to other M7 customers across Europe.

Strong cash flow

The Telio Group has generated a free cash flow representing NOK 5.82 per share in 2013. Net interest bearing debt is reduced from NOK 347 million at 31 March to NOK 257 million as of 31 December 2013. The sale of the NextGenTel office building was completed 31 December 2013 and brought NOK 95 million in additional cash to the company in January 2014.

Refinancing

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 will be repaid at 109.50% of par value. 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.

Financial results

In the fourth quarter 2013, the Telio Group achieved revenues of NOK 327.7 million compared to NOK 110.6 million in the year-ago quarter. EBITDA was NOK 73.9 million (22.5% EBITDA margin) compared to NOK 9.5 million (8.6 % EBITDA margin) in the same quarter last year. Operating profit ended at NOK 32.8 million compared to NOK 4.6 million in the fourth quarter of 2012 (EBITDA and operating profit are adjusted for non-recurring items and EBIT is adjusted for amortization cost related to the acquisition of NextGenTel).

See financial report and market presentation for Q4 2013 at:

http://telioholding.no/Investor-relations/Reports-and-presentations

Download high definition pictures of CEO Eirik Lunde at http://telioholding.no/News-and-media/Logos-and-pictures

This information was brought to you by Cision http://news.cision.com

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