Promising start to the year as digital transformation drive continues
April 24 2018 - 1:00AM
"Entering 2018, I am pleased to see that we
continue to grow and renew ourselves. We added close to two million
customers in the first quarter; subscription and traffic revenues
increased by 1% and EBITDA grew by 10%. Our digital transformation
and focused efforts on efficiency improvements continue to deliver
significant results. Our performance in Scandinavia was robust, and
we continue to see improving trends in developed Asia. After a soft
start to the year in Bangladesh and Pakistan, growth picked up
during the quarter and we expect revenue growth in those markets to
improve going forward.
During the first quarter, we took two important
steps in developing Telenor. We announced the disposal of our
mobile operations in Central and Eastern Europe, which enables us
to focus on developing our businesses in Scandinavia and Asia. We
also strengthened digital positions by entering a strategic
partnership to develop our financial services business in Pakistan.
In Thailand, an important milestone was reached yesterday with the
signing of the 2.3 GHz spectrum agreement.
In summary, another solid quarter and we continue
our consistent execution of the strategy,'' said Telenor Group
Chief Executive Officer Sigve Brekke.
Key Figures
NOK (in millions) |
Q1 2018 |
Q1 2017 |
Year 2017 |
Q1 2018
(IFRS 15) |
Revenues |
27 113 |
27 596 |
112 069 |
27 138 |
Organic revenue growth (%) |
-1.5 |
0.3 |
0.5 |
|
Subscription and traffic revenues |
21 157 |
21 177 |
86 314 |
21 027 |
Organic subscription and traffic revenue growth (%) |
1.0 |
1.2 |
2.4 |
|
EBITDA before other income and other expenses |
11 309 |
10 504 |
44 694 |
11 330 |
EBITDA before other income and other expenses/Revenues
(%) |
41.7 |
38.1 |
39.9 |
41.8 |
Net income attributable to equity holders of Telenor ASA |
4 987 |
4 168 |
11 983 |
4 983 |
Capex excl. licences and spectrum/Revenues (%) |
11.3 |
15.9 |
15.4 |
11.3 |
Capex/Revenues (%) |
17.3 |
15.9 |
18.1 |
17.3 |
Free cash flow |
2 575 |
2 166 |
24 867 |
2 575 |
Mobile subscriptions - Change in quarter/Total (mill.) |
1.7 |
2.4 |
170 |
1.7 |
Discontinued operations: Telenor
India, Hungary, Montenegro & Serbia and Bulgaria, Telenor
Common Operation, Telenor Microfinance Bank and Telenor
Banka.
First quarter 2018
summary
-
Total reported revenues fell by 2% to NOK 27.1
billion. On an organic basis, subscription and traffic revenues
grew 1%.
-
Organic EBITDA growth of 10%.
-
Reported opex decreased by NOK 0.8 billion.
Adjusted for currency effects, the reduction was NOK 0.7 billion or
7%.
-
EBITDA before other items was NOK 11.3 billion,
corresponding to an EBITDA margin of 41.7%, an increase of 4
percentage points from last year.
-
Net income attributable to equity holders of
Telenor ASA was NOK 5.0 billion, or NOK 3.35 earnings per
share.
-
Capex excluding spectrum and licences was NOK
3.1 billion, resulting in a capex to sales ratio of 11%.
-
Free cash flow for the quarter was NOK 2.6
billion.
Outlook
-
For 2018, we expect an organic subscription and
traffic revenue growth of 1-2%, and an organic EBITDA growth of
2-3%. Capex excluding licences and spectrum has been adjusted for
the discontinuation of the Central and Eastern European operations,
and is now expected to be NOK 17-18 billion.
Media Contact
Meera Bhatia (+47) 46 84 49 59,
meera.bhatia@telenor.com
Investor Relations
Contacts
Marianne Moe (+47) 91 61 76
31, marianne.moe@telenor.com
Helge Øien (+47) 91 31 92 42, helge.oien@telenor.com
Press and analyst presentation
In connection with the publication of the financial
results, a press and analyst conference will be held on Tuesday 24
April at 09:00 hrs Norwegian time/CET. The presentation, which will
also be broadcast live via webcast, will be held in Auditorium
Voice, Telenor Expo Visitor Centre at Fornebu near Oslo. CEO Sigve
Brekke and CFO Jørgen C. Arentz Rostrup will present the results.
The presentation will be held in English.
You may also call in and listen to the
presentation over the phone. This service allows you to ask
questions during the Q&A session at the end of the
presentation. To participate in the conference call, please
register before the conference starts by calling:
+47 2100 2610 (local Norway)
+46 (0)8 5033 6574 (local Sweden)
+44 (0)330 336 9105 (local UK)
+1 929-477-0353 (local US)
Please state confirmation code 9600829.
Material
The quarterly report and the presentation are available here.
https://www.telenor.com/investors/reports/2018/telenor-groups-results-for-the-1st-quarter-2018/
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Telenor via Globenewswire
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