Continued strong performance – digitalisation and modernisation drive EBITDA growth

(Fornebu, 21 October 2020) «Telenor’s third quarter results highlight the strength of our operating model, which provides flexibility in managing operations of critical services during uncertain times. The overall performance was positively impacted by organisational modernisation and accelerated digitalisation programmes.

In the quarter, Telenor reported a 2 percent decline in subscription and traffic revenues due to a continued roaming shortfall and lower sales in Asia. However, this development was more than compensated by an opex reduction of 8 percent, resulting in an EBITDA growth of 4 percent and free cash flow of NOK 4 billion.

The results from the Nordic operations were strong this quarter. Telenor Norway delivers a unique combination of innovation and modernisation to their customers and see strong intake on their new speed based price plans. I am pleased to see increasing subscriber bases in Finland, Denmark and Sweden.

In Asia, Pakistan and Bangladesh show strong subscriber growth this quarter. Also this quarter we saw some impact from the COVID-19 pandemic on our business, primarily in Thailand and Malaysia. 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.

Our strategy of growth, modernisation and responsible business has provided us with the ability to manoeuvre during these demanding times. We now experience a stronger EBITDA development and adjust our full year 2020 outlook to low single digit organic EBITDA growth whereas we maintain the low single digit percent decline in subscription and traffic revenue and capex to sales around 13 percent.»

Sigve Brekke, President and CEO, Telenor Group

 

KEY FIGURES TELENOR GROUP	Third quarter		First three quarters		Year
NOK in million	2020	2019	2020	2019	2019
Revenues	30,005	28,424	91,862	81,929	113,666
Organic revenue growth (%)	-2.3	0.4	-1.7	0.6	1.2
Subscription and traffic revenues	22,903	21,724	70,523	62,591	85,954
Organic subscription and traffic revenue growth (%)	-2.3	-0.1	-1.4	-0.1	0.4
EBITDA before other income and other expenses	14,571	13,132	43,008	37,338	50,735
Organic EBITDA growth (%)	3.6	-7.2	2.4	-4.8	-2.7
EBITDA before other income and other expenses/Revenues (%)	48.6	46.2	46.8	45.6	44.6
Net income attributable to equity holders of Telenor ASA	4,527	-679	9,652	5,999	7,773
Capex excl. licences and spectrum	3,669	3,726	10,564	11,841	17,415
Total Capex	4,067	3,759	11,052	11,881	18,075
Free cash flow before M&A	3,895	2,789	10,554	3,283	3,831
Total Free cash flow	4,372	-11,660	11,725	-10,258	-18,998
Mobile subscriptions - Change in quarter/Total (mill.)	-2.1	5.2	180.3	183.4	186.0