Telenor posted increased revenue and net profit in Q4 2019, boosted by positive performances in Myanmar and Thailand along with a recent takeover of Finnish operator DNA.
It recorded revenue of NOK31.8 billion ($3.5 billion), up 18 per cent from Q4 2018, with net profit improving to NOK1.9 billion from NOK1.2 billion, which it attributed to currency gains and the impact of settling a legal spat with CAT Telecom in Thailand, which it booked in Q4 2018 figures.
CEO Sigve Brekke said in a statement one of its top priorities was to return to growth in Thailand and Myanmar, where it has struggled in recent times, and it was “reassuring” to end the year positively in both markets.
Revenue from its dtac operation in Thailand increased from NOK4.9 billion to NOK6.5 billion, boosted by subscription gains and lower opex. Revenue in Myanmar increased from NOK1.3 billion to NOK1.7 billion.
Telenor’s top line was also boosted by the acquisition of DNA, completed in August 2019, which recorded total revenue of NOK2.4 billion during the quarter.
In home market Norway, Telenor registered continued growth in mobile and higher ARPU from fibre, resulting in a modest revenue rise of 1 per cent to NOK6.7 billion.
Telenor’s positive quarter was partly offset by price pressure in Sweden and a “challenging situation” in Pakistan, noted Brekke.
Revenue stayed flat in Sweden, at NOK3.2 billion. In Pakistan, it cited a tough microeconomic environment and regulatory challenges as factors in a dip in revenue from NOK1.8 billion to NOK1.5 billion.
The company ended 2019 with 186 million subscribers, an increase of 12 million year-on-year.
Telenor’s outlook for 2020 was positive, with its board proposing a 4 per cent increase in dividend to NOK8.70 per share.
Capex for 2020, excluding licences and spectrum, will represent around 15 per cent of sales, it said.Subscribe to our daily newsletter Back