Telenor profits from exceptional items - Mobile World Live

Telenor profits from exceptional items

03 MAY 2022

Telenor Group president and CEO Sigve Brekke (pictured) noted higher energy prices and activities related to planned mergers in Malaysia and Thailand had a negative impact on core earnings in Q1, although he noted the mobile business performed well overall.

Brekke noted the impact of network modernisation and structural changes in Asia, with fixed line challenges in its domestic Norwegian business and higher competition in Thailand also weighing on Telenor.

Revenue was broadly flat year-on-year at NOK27 billion ($TK), though Telenor notably recorded net income of NOK6.6 billion compared with a loss of NOK3.9 billion in Q1 2021.

However, the turnaround was primarily due to a NOK6.5 billion impairment for Telenor Myanmar in the 2021 period, along with fixed network divestment gains in Sweden and a reversal of some tax expenses.

Brekke stated he was “especially pleased” with mobile service revenue and ARPU across the group’s Nordic markets.

He described growth in Bangladesh and Pakistan as “solid” and pointed to a completion of the sale of Telenor Myanmar, “concluding a challenging process in a very difficult situation”.

Brekke noted planned M&As in Thailand and Malaysia are “progressing through the necessary steps”.

Telenor expects EBITDA growth “to lag” revenue development over a few quarters.

For 2022 as a whole, and excluding Digi in Malaysia, Telenor expects low single-digit growth in organic service revenue.

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Anne Morris

Anne Morris is a freelance journalist and contributes news and analysis to Mobile World Live.

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