Telenor issues profit warning on energy costs - Mobile World Live

Telenor issues profit warning on energy costs

20 SEP 2022

Telenor warned it would be difficult to hit its profit target for 2022 due to a hike in energy prices, as it finalised a restructure for its Nordic operation and hinted at a possible listing of its Asia business.

In a statement issued following its capital markets day, Telenor detailed significant changes to ensure growth, highlighting ambitions to become a leader in the Nordics and bolster its positions in security and IoT services.

However, in the short term Telenor warned it would be increasingly difficult to reach its guiding or even flat EBITDA in 2022 due to the “energy price development” of the last couple of months.

In the mid-term (2023 to 2025), Telenor is targeting low- to mid-single digit growth in Nordic service revenue, mid-single digital growth in the region’s EBITDA and raising dividend share annually over the period.

Independent businesses
Moving to the restructure, Telenor said it was seeking to create more independence between its businesses in the Nordics and Asia.

In the Nordics, the company completed a shake-up announced last month, bringing together four companies to help develop its asset, although it did not add further detail at this stage.

Its businesses in Asia will run under Telenor Asia, with structural partnerships or an IPO future options for the unit.

Telenor notably has made big recent moves in the region, striking a merger in Malaysia with Axiata and a $7.5 billion tie-up in Thailand, both of which are under regulatory review.



Kavit Majithia

Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >>

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