Telenor Group detailed its strategy up to the end of 2022, forecasting flat to modest subscription and traffic revenue growth, and further cost cutting, measures which will likely result in the loss of around 3,000 jobs.
In a presentation released at its capital markets day, Telenor said it was expecting subscription and traffic revenue to increase by 2 per cent at most over the period, while it is targeting a net operating expenditure reduction of between 1 per cent to 3 per cent.
Other goals include a capex-to-sales ratio of 15 per cent, in line with its previous forecast, a target it aims to maintain despite ongoing investment in expanding its 5G networks.
The company said it expects to cut around 15 per cent of its workforce over the next three years, equating to 3,000 jobs, as it steps-up “critical competency development”.
Planned staff reductions add to a broader 22 per cent cut implemented between 2015 and 2019.
In addition to lowering its headcount, Telenor outlined numerous measures it will take to generate savings, including digitalising its operations through automation and shutting-down copper networks.
Telenor is targeting net savings of between NOK3 billion ($323.3 million) to NOK4 billion per year up to end-2022.
Sigve Brekke, CEO and president (pictured) said continuing to modernise Telenor “will be essential in order to stay relevant for customers”, as he targets success at home and abroad.
“Solid growth opportunities in emerging Asia, and the strong customer demand for adjacent services in the Nordics is expected to be supportive of revenue growth.”
Telenor added it is targeting carbon natural business operations in the Nordic region and a 50 per cent reduction of carbon emissions from its Asia operations by 2030.Subscribe to our daily newsletter Back