Telenor sells satellite business
November 16, 2023
By Chris Forrester
Telenor, which has been looking to dispose of its satellite division for some years, has finally announced a buyer in the shape of Norwegian government-owned business, Space Norway.
Space Norway paid NOK 2.36 billion (about €200 million) for the three satellites in Telenor’s fleet which operate from 1 degree west.
Telenor’s satellite division generated revenues of NOK 707 million, EBITDA of NOK 504 million and EBIT of NOK 284 million.
Investment bank BNP/Paribas, in a note to clients, stated: “We believe a valuation discount for Telenor Satellites [when compared with] SES and Eutelsat can be explained by the weaker growth outlook of the business. Unlike SES/ETL, Telenor did not invest in non-GEO stationary satellites, does not own LEO or MEO spectrum rights and lacks global scale. In the age of mega-constellations, it has a weaker competitive position than SES and ETL in our view.”