Telenor returns to growth
July 20, 2021
Telenor, the multinational telco, returned to growth in the second quarter. The growth was driven by strong performance in the Nordics combined with a growing subscriber base and increased data consumption in the Asian markets. Subscription and traffic revenues increased by 2 per cent. Combined with progress on the modernisation agenda this resulted in an EBITDA uplift of 4 per cent.
The Group’s mobile subscriber base grew by 1.7 million. The subscriber base was 170 million at the end of the quarter. Subscription and traffic revenues increased by 2 per cent on an organic basis. Total reported revenues were NOK 27.2 billion (€2.56bn), a decrease of NOK 1.8 billion. Reported net income was NOK 2.2 billion.
Sigve Brekke, President and CEO, Telenor Group, commented: “In Norway, the decline in fixed legacy revenues are offset by growth in fibre and fixed wireless accesses and mobile service revenues. Improved subscription development in Sweden contributed positively towards stabilisation of the subscription and traffic revenues. Furthermore, Finland and Denmark continued its strong performance, delivering both revenue and EBITDA growth in the quarter.”
“In Asia, Telenor aims to strengthen the position in our markets and be better positioned for future growth. The merger agreement with Celcom in Malaysia was signed in Q2 and marks the next step towards creating a leading operator in the country. We have an ambition to serve the data revolution in the region and the demand for data contributes to the revenue development in Bangladesh and Pakistan. Domestic market performance in Thailand has stabilised the top-line despite impact from the third wave of the pandemic.”
“On July 8th, Telenor Group announced an agreement to sell Telenor Myanmar. The situation in the country has over the past months deteriorated, posing challenges related to people security, the regulatory environment and compliance. It has not been an easy decision. The commitment to Telenor’s values and responsible business conduct is the reason why we believe this sale is the best possible solution in this situation.”
“With the first half of 2021 behind us, and a strong set of numbers for the second quarter, we adjust our expectations for the full year 2021. We now expect organic subscription and traffic revenues growth of 0-1 per cent, organic EBITDA growth of 0-2 per cent and a capex to sales ratio of 15 – 16 per cent,” concluded Brekke.