January 27, 2023

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Telenor loses a key customer – Fjordkraft’s mobile customers are transferred to Telia

On September 1, Birgit Ingebritsen took over as CEO of Telenor Norway when her predecessor Petter-Børre Furberg became CEO of the Nordic Group. After three months in charge, Ingebritsen loses a large source of income.

Fjordkraft has entered into an agreement with rival Telia to use its mobile network, according to a letter Friday morning.

In addition to electricity, Fjordkraft also offers mobile phone service. Today the company is the largest mobile operator in the country without the Internet. In the third quarter, the company had 143,000 mobile customers. To date, these mobile phone users have been connected to the Telenor mobile network.

“We are very pleased that Fjordkraft has chosen Telia, and we look forward to welcoming its mobile customers to Norway’s most advanced 5G network,” says Stein-Erik Vellan, CEO of Telia Norway.

new company

In terms of transportation, a new company named Fjordkraft Mobil will be created, of which Telia will own 39 percent. It will be settled in the form of a cash settlement of approximately NOK 120 million, which values ​​the new company at NOK 385 million.

The final purchase price will depend on the number of subscribers transferred to Telia, it was reported.

The agreement means that Fjordkraft’s mobile customers will be transferred to Telia’s mobile network during the second quarter of 2023. Fjordkraft will also own the remaining 61 percent stake in the new company.

– Fjordkraft’s mobile business has grown to be the largest provider of mobile services without its own network. Together with Telia, we will be able to develop this business further with more attractive offers and services for mobile customers, says Fjordkraft CEO Magnar Øyhovden in a press release.

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Update from Elmera

Elmera, which owns Fjordkraft, will also provide a fourth quarter update.

There, it states that the company expects a negative adjusted operating result in the fourth quarter of this year, and points to, among other things, significant volatility in the spot electricity market.

“Therefore, the company does not expect to achieve its goals for 2022,” it said in a stock announcement.

For the full year 2023, the company expects an adjusted operating profit of around half a billion crowns.

“As interest rates rise and prices continue to rise in the electricity futures market, interest costs related to electricity purchases are expected to increase significantly in 2023 compared to this year,” the company wrote.

The company will file its full fourth-quarter report on February 16 of next year.

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