Telenor reports “firm operational momentum” in Q2
July 20, 2023
Telenor, the Norwegian multinational telco, has reported Q2 service revenue of NOK 15.8 billion (€1.42bn), an increase of NOK 0.8 billion or (5 per cent) compared to the same period last year. On an organic basis, service revenues increased by 4 per cent.
EBITDA before other items was NOK 8.8 billion and increased by 4 per cent, both on reported and organic basis. Free cash flow before M&A was negative NOK 0.2 billion. Free cash flow was impacted by payment of NOK 1.7 billion related to legal disputes in Bangladesh. The leverage ratio at the end of the quarter was 2.4x, which is an increase of 0.2x compared to the end of 2022, impacted by adverse currency movements, dividend payout and share buyback, partly offset by positive contribution from M&A activities.
Telenor maintains its financial outlook for 2023:
- Low-to-mid single-digit growth in Nordic service revenues
- Low-to-mid single-digit growth in Nordic EBITDA
- Nordic capex/sales of around 17 per cent
“In the second quarter we continue to execute on the strategy we laid out last year, seeing firm operational momentum. Quality connectivity for customers and attractive security offerings continue to drive growth”, commented Sigve Brekke, President and CEO of Telenor Group. “We maintain our focus on progress in modernisation and efficiency initiatives that will drive improved cash flow generation over time.”