Telenor reported a sizeable drop in net income in Q2 while revenue also fell as the company was hit by a decline in fixed legacy sales and the negative impact of currency effects.
Revenue of NOK27.2 billion ($3 billion) in Q2 2021 was down from NOK29 billion in the comparable period of 2020, although it rose 3.3 per cent on an organic basis.
Net income declined from NOK4.4 billion to NOK2.2 billion, but despite the drop-off, Telenor positioned the quarter as successful due to a return to growth.
President and CEO Sigve Brekke (pictured) pointed to momentum in fibre, fixed wireless and mobile service revenue in its home market as offsetting declines in fixed legacy revenue. Improved subscription revenue in Sweden stabilised turnover in the country, while Finland and Denmark also continued their “strong performance”.
Coming to Asia, Brekke said it aimed to strengthen its position across its markets, pointing to a merger agreement with Celcom in Malaysia which marks the next step towards becoming a leader in the country. Domestic performance in Thailand also stabilised its top-line, “despite the impact from the third wave” of Covid-19 (coronavirus).
“With the first half of 2021 behind us, and a strong set of numbers for the second quarter, we adjust our expectations for the full year 2021,” Brekke stated.
Telenor prediced organic subscription growth in the range of 0 per cent to 1 per cent; EBITDA between 0 per cent and 2 per cent; and a capex to sales ratio of 15 per cent to 16 per cent.
The group’s mobile subscriber base grew by 1.7 million to hit 170 million at the end of the quarter,Subscribe to our daily newsletter Back