Telenor Group expressed confidence for its full-year performance, expecting single-digit profit growth following cost reductions made across its operations to offset a revenue drop in Q3.
In its earnings statement, CEO Sigve Brekke (pictured) highlighted “strong” results in the group’s Nordic operations during the quarter, with subscriber increases in Finland, Denmark and Sweden. Customer numbers were also up in Pakistan and Bangladesh.
Impact from Covid-19 (coronavirus) was felt mainly in the company’s Thai and Malaysian operations.
“In Thailand, we experience continued effects from shortfall in tourism revenues while competition has increased in Malaysia. In Myanmar, SIM re-registrations affect the subscriber base”, Brekke noted.
However, he highlighted Telenor’s strategy of “growth, modernisation and responsible business” had given it “the ability to manoeuvre during these demanding times”.
The company adjusted its full-year outlook to low single-digit organic EBITDA growth (it previously expected this to be broadly flat), and maintained a forecast its subscription and traffic revenue would decline slightly. Its capex ratio prediction remained unchanged at around 13 per cent
Q3
Telenor overturned a net loss of NOK436 million ($47.3 million) in Q3 2019 with an NOK4.5 billion profit in the recent quarter, with revenue up 5.5 per cent to NOK30 billion.
Subscription and traffic revenue dropped 2.3 per cent due to “a continued roaming shortfall and lower sales in Asia”. Telenor said this was “more than compensated” by an 8 per cent cut in operating expenses.
The group’s overall mobile subscriptions were 180.3 million, down 2.1 per cent.
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