NextGenTel Posts Q2 Profit

OSLO, Norway -- For the first quarter ever, Norwegian broadband company NextGenTelreports a positive EBIT of mNOK 5.2. The P&L for the month of Juneshowed a positive pre tax result of about mNOK 1.

NextGenTel reached revenue of mNOK 111.2 in the second quarter of2004, a growth of 57.2 % compared to Q2-2003. The EBITDA was mNOK31.9, a growth of 159 % compared to Q2-2003. The gross margin andaverage revenue per user (ARPU) were both identical compared to thefirst quarter 2004, by 57,1 % and NOK 402.

”The results show that NextGenTel sustains its position as the second largestbroadband player in the Norwegian market, and is well poised to take advantageof the strongly growing broadband market”, says CEO Olav Stokke inNextGenTel, in relation to the presentation of the interim results of Q2-2004today.

”The number of lines in operation was increased by net 7,350 during the quarter.The growth carried on in the summer holiday month of July with a net number ofnew lines of 1,050. The total number of lines in operation reached 80,300 at theend of July.This demonstrates the competitiveness of NextGenTel and our ability to offerinnovative products with an attractive price/performance ratio in the market. Wewill in the coming future reinforce this by launching broadband telephony,increase our own network’s geographical coverage to cities in Northern Norwayand wherever is considered viable, and we are now offering wholesale productsto service providers. The first point of presence in Northern Norway will beoperational this week in Bodø, followed by other major cities”, says Stokke.

The revenue of mNOK 111.2 in Q2 is an increase of 57.2 % from Q2-2003, and12.9 % over the previous quarter. EBITDA was mNOK 31.9, and is 34 % abovethe previous quarter. The Q2 EBIT at mNOK 5.2 is an improvement of mNOK14.9 from Q2-2003, and mNOK 7.5 above the previous quarter.

“The improved results are a consequence of increased revenue, stable margins,stable operating costs and depreciation, and reduced finance costs”, says Stokke.

ARPU, excluding connection charges and other revenue, was NOK 402 in thesecond quarter of 2004, which is identical to the previous quarter. Total ARPUincreased marginally from NOK 469 in Q1-2004 to NOK 472 in Q2-2004.The equity ratio at the end of the second quarter was 37.3 %. During Q2-2004the equity ratio has increased from 36.5 % as a consequence of a planned debtreduction in the company’s balance sheet.At the end of the second quarter NextGenTel had available cash of mNOK 87.7.

NextGenTel Holding ASA