The semi-government telecom group operating in the mobile business in Asia and the Nordics had turnover of NOK 20.2 billion and achieved operating profit before depreciation (EBITDA) of NOK 8.5 billion, the company said.
— In the second quarter, we continue to execute on the strategy we laid out last year, with strong operational progress. The quality of our services and good security solutions continue to drive growth, says Sigve Brekke, CEO of Telenor.
Analysts previously expected average second-quarter turnover of NOK 19.7 billion and EBITDA of NOK 8.4 billion, analyst estimates.
– We continue to work through modernization and efficiency measures that will improve cash flow over time, Brick adds.
Profit before tax ended at NOK 2.2 billion in the second quarter. Meanwhile, service revenue rose to NOK 15.8 billion, up by NOK 800 million over the same period a year earlier.
He maintains the look
It appears from the report that Telenor is maintaining its financial outlook for 2023. That means it expects single-digit growth in Northern Services revenue, and single-digit growth in operating profit before depreciation.
At the same time, it is reported that business investments in the Nordic countries are expected to account for about 17 percent of operating income in the future.
Like many other companies, Telenor is also affected by the Norwegian krone. The majority of Telenor’s net debt is in euros, dollars and Swedish krona. At the same time, the Norwegian krone has weakened so far this quarter against most of the currencies Telenor is exposed to.
In Norway, Telenor has now noticed that the company is losing its largest mobile customer, Fjordkraft. Just before the Christmas holidays, it was announced that Telia was buying a 39 percent stake in Fjordkraft Mobil. The agreement means that Fjordkraft’s 143,000 mobile customers will be transferred to Telia’s mobile network by the summer of 2023.
In the second quarter, Telenor’s two mobile mergers in Asia were included into associated companies, one in Malaysia and the other in Thailand.
Last year’s mobile merger between Celcom and Telenor’s mobile phone company Digi in Malaysia is now counted in the associated companies. In June, Telenor received a quarterly dividend of NOK 300 million from CelcomDigi.
On March 1, Telenor announced that a mobile merger between the company’s Thai subsidiary, Dtac, and its competitor True, was in the works.
The combined mobile phone company in Thailand is now called True Corp and has 55 million mobile customers, five million broadband customers and 3.2 million TV subscribers. Telenor and True’s owner, the massive Thai conglomerate Charoen Pokphand Group, are equal partners with a 30 percent stake each. One month of TrueCorp’s result as an associated company is included in Telenor’s other calculations for the second quarter.
In Bangladesh, where Telenor is a major shareholder in the country’s largest mobile phone company Grameenphone, the company in June paid 800 million in old tax disputes to the country’s treasury.
Grameenphone had sales in the second quarter of NOK four billion and had an operating profit of NOK 1.6 billion – about six percent lower than in the same period last year. But the company increased its investment by almost 20 percent to NOK 711 million in the quarter compared to the same quarter last year.(conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We’d like you to share our statuses using links that lead directly to our pages. Reproduction or other use of all or part of the Content may be made only with written permission or as permitted by law. For more terms see here.
“Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff.”