Telenor CEO Sigve Brekke (pictured) believes the company’s digital transformation efforts are contributing towards “significant results”, as the operator recorded a small increase in net income during Q1 2018.

In its earnings statement the operator, which in 2017 announced a drive to focus on its Nordic and emerging market operations and outlined plans to simplify its business by focusing on digital, reported net income of NOK5 billion ($633 million), up from NOK4.2 billion in the same quarter of 2017.

Revenue fell 2 per cent to NOK27.1 billion due to negative currency effects.

Net mobile subscriber additions of close to 2 million during the quarter took its total subscriber base to 170 million. Bangladesh and Pakistan were the main growth drivers, adding 2.1 million and 1 million respectively, though the increase was offset by losses of 0.8 million in Thailand and 0.5 million in Myanmar.

In a statement, Brekke said Q1 2018 was particularly significant because the company had made “two important steps” in its development.

He cited the sale of its mobile operations in Central and Eastern Europe to PPF Group for €2.8 billion, as well as strengthening its digital position by entering a strategic partnership to develop financial services in Pakistan.

As a result of the disposal of its CEE operations, Telenor also adjusted its capex outlook (excluding licences and spectrum) to between NOK17 billion and NOK18 billion, from NOK18 billion to NOK19 billion previously.

“Our digital transformation and focused efforts on efficiency improvements continue to deliver significant results,” said Brekke. “Our performance in Scandinavia was robust, and we continue to see emerging trends in developed Asia.”

Strength at home
Breaking out individual operations, the company reported total revenue of NOK6.3 billion in its home market of Norway, up slightly from NOK6.2 in Q1 2017 following “continued effort on revenue renewal and efficiency improvements”. Revenue in Sweden increased from NOK3 billion to NOK3.2 billion in the recent quarter, but Denmark suffered a small loss due to “lower sale of handsets and fixed products”.

In Asia, Pakistan suffered during the quarter with revenue dropping from NOK2 billion to NOK1.8 billion. The company said the situation would improve, with data tax one of the reasons behind the drop.

Revenue in Bangladesh also slipped, despite the strong customer additions, from NOK3.3 billion in Q1 2017 to NOK3 billion.