Operational execution in line with plan

“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”, says 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”, Brekke adds. 

• Service revenues were NOK 15.8 billion, which is an increase of NOK 0.8 billion or 5 percent compared to the same period last year. On an organic basis, service revenues increased by 4 percent.
• EBITDA before other items was NOK 8.8 billion and increased by 4 percent, both on reported and organic basis.
• Net income attributable to equity holders of Telenor ASA was NOK 0.8 billion for the quarter.
• Free cash flow before M&A was negative NOK 0.2 bn. 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 the 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 percent

	Second quarter		First half year		Year
NOK in million	2023	2022	2023	2022	2022
Service revenues	15 841	15 049	30 692	29 549	59 760
Organic service revenue growth (%)	4%	5%	4%	2%	3%
Total Revenues	20 224	19 247	39 411	37 678	76 877
Organic revenue growth (%)	3%	4%	4%	3%	4%
Operating expenses	(6 777)	(6 385)	(13 218)	(12 528)	(25 229)
EBITDA before other income and other expenses	8 767	8 456	16 846	16 504	33 830
Organic EBITDA growth (%)	4%	0%	3%	-1%	1%
Operating profit	4 374	1 443	8 209	6 836	15 143
Net income from associated companies and joint ventures	(100)	(67)	(291)	(172)	(301)
Net income attributable to equity holders of Telenor ASA	821	(1 113)	18 967	5 457	44 913
Capex excl. lease	3 437	3 452	6 971	6 368	13 560
Free cash flow before M&A	(191)	930	242	3 364	9 866
Total Free cash flow	(518)	856	5 147	4 446	10 604
Leverage	2.4	2.2	2.4	2.2	2.2

*Please refer to page 44 in the report for Definitions and descriptions of Alternative Performance Measures

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