Telenor focussed on strong data uptake across emerging markets in a stable set of Q1 results, as CEO Sigve Brekke insisted the company is laying a “solid foundation” following its decision to exit India.

The Norway-headquartered operator entered into a definitive agreement with India-based Bharti Airtel to sell its struggling unit in the country in February, and the deal is expected to close within 12 months.

Telenor said its Q1 results had been adjusted to reflect its new group structure, with India now presented as a discontinued operation. As a result of the decision, Telenor raised its 2017 outlook slightly. Its 2017 EBITDA margin is now expected to hit 37 per cent, 1 per cent higher than the previous guidance.

In a statement, Brekke reiterated “simplification and efficiency improvements” were top of the agenda to improve profitability, and recent moves by the company “are all examples of these efforts”. In addition to its decision to exit India, Telenor is also in the process of selling off its stake in Veon (formerly VimpelCom), as well as taking the decision to reorganise its business units into four regional clusters.

Earnings
Telenor’s net income in Q1 2017 of NOK4.2 billion ($484.7 million) was marginally lower than the NOK4.3 billion generated in the comparable period of 2016. Revenue of NOK30.5 billion was 3 per cent lower, due to currency effects.

The company explained its net income figure still included India, and was largely on par with Q1 2016 “as reduced net income from associated companies was offset by improved net income from the discontinued operation”.

Telenor said revenue continued to be positively impacted by both ARPU uplift and a higher number of customers in Bangladesh (1.9 million additions in total), as well as sustained growth in the customer base in both Myanmar and Pakistan. However, the growth was offset by lower handset sales and decreased interconnection rates.

Brekke added the company introduced a number of new and improved mobile offers in several markets during the recent quarter, while data consumption in Asia continued to be strong, particularly in Myanmar and Pakistan.

The total share of active data users increased by 1 percentage point to 50 per cent during the quarter, while overall mobile subscriptions increased by 2 million in the quarter, giving Telenor a total of 172 million.