Strong third quarter for Telenor
"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," says Sigve Brekke, CEO of Telenor Group.
Service revenues were NOK 15.8 billion, which is an increase of NOK 0.5 billion or 4% compared to the same period last year. EBITDA grew by a 7% year on year, adjusted for a positive one-time effect in Pakistan last year. Organic EBITDA increased by 1%.
"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," says Sigve Brekke, CEO of Telenor Group.
Telenor Nordics delivered 4% service revenue growth and 8% EBITDA growth in the third quarter, supported by strong operational performance and lower energy prices. Growth in mobile remained steady at around 5%.
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% and EBITDA increased by 4%. 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," says Sigve Brekke, CEO of Telenor Group.
Updated Financial Outlook for 2023:
- Above 3% organic growth in Nordic service revenues (updated from “low-to-mid-single digit growth”).
- 3-4% organic growth in Nordic EBITDA (updated from “low-to-mid-single digit growth”).
- Nordic capex to sales ratio of around 17% (unchanged).
Key figures Telenor Group*
| | Third quarter | First three quarters | Year | ||
| NOK in million | 2023 | 2022 | 2023 | 2022 | 2022 |
| Service revenues | 15 775 | 15 227 | 46 467 | 44 775 | 59 760 |
| Organic service revenue growth (%) | 4% | 6% | 4% | 5% | 3% |
| Total Revenues | 20 108 | 19 531 | 59 518 | 57 210 | 76 877 |
| Organic revenue growth (%) | 2% | 6% | 3% | 4% | 4% |
| Operating expenses | (6 331) | (5 946) | (19 550) | (18 474) | (25 229) |
| EBITDA before other income and other expenses | 9 251 | 9 287 | 26 097 | 25 790 | 33 830 |
| Organic EBITDA growth (%) | 1% | 6% | 2% | 1% | 1% |
| Operating profit | 4 987 | 4 980 | 13 195 | 11 816 | 15 143 |
| Net income from associated companies and joint ventures | 23 | (93) | (269) | (264) | (301) |
| Net income attributable to equity holders of Telenor ASA | 2 451 | 1 549 | 21 417 | 7 006 | 44 913 |
| Capex excl. lease | 2 666 | 3 172 | 9 637 | 9 540 | 13 560 |
| Free cash flow before M&A | 4 330 | 3 955 | 4 572 | 7 319 | 9 866 |
| Total Free cash flow | 4 331 | 5 211 | 9 479 | 9 657 | 10 604 |
| Leverage | 2.2 | 2.1 | 2.2 | 2.1 | 2.2 |
Media contact:
Ingibjörg Meyer-Myklestad +47 90 60 55 05
Investor Relations:
Frank Maaø +47 91 67 40 45
