Telenor sees “solid growth” in Q3
October 25, 2023
Norwegian telco Telenor has reported Q3 earnings above expectations, supported by growing mobile service revenue and lower energy prices in the Nordics, and narrowed its full-year projections.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for July-September rose 1.5 per cent on an organic basis to NOK 9.3 billion (€788.7m).
“Third quarter was a strong quarter for Telenor. We delivered solid growth and earnings momentum in the Nordics and saw firm traction for synergy realisation in Asia,” said Sigve Brekke, CEO of Telenor Group.
Service revenues were NOK 15.8 billion, which is an increase of NOK 0.5 billion or 4 per cent compared to the same period last year. EBITDA grew by a 7 per cent year on year, adjusted for a positive one-time effect in Pakistan last year. Organic EBITDA increased by 1 per cent.
“Our success depends on our ability to create value for our customers and that is our key driver. We continue to see strong customer validation and receive top customer experience ratings for our consumer mobile services in Denmark, Finland and Sweden,” added Brekke.
Telenor Nordics delivered 4 per cent service revenue growth and 8 per cent EBITDA growth in Q3, supported by strong operational performance and lower energy prices. Growth in mobile remained steady at around 5 per cent.
In Asia, Telenor Group has number one positions in three out of four markets, with a total customer base of 200 million people. Telenor’s businesses in Asia delivered underlying growth despite of challenging macro conditions. Telenor Asia’s service revenues adjusted for the Pakistan one-time effect last year, improved by 6 per cent and EBITDA increased by 4 per cent. This was driven by mobile revenue growth in both Bangladesh and Pakistan, more than offsetting the negative impact of inflationary pressure, including higher energy prices.
“Customer excellence, free cash flow generation and long-term value creation will remain top priorities for us going forward,” concluded Brekke.
Updated Financial Outlook for 2023:
- Above 3 per cent organic growth in Nordic service revenues (updated from ‘low-to-mid-single digit growth’).
- 3-4 per cent organic growth in Nordic EBITDA (updated from ‘low-to-mid-single digit growth’).
- Nordic capex to sales ratio of around 17 per cent (unchanged).