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Our digital transformation and focused efforts on efficiency improvements continue to deliver significant results. Our performance in Scandinavia was robust, and we continue to see improving trends in developed Asia. After a soft start to the year in Bangladesh and Pakistan, growth picked up during the quarter and we expect revenue growth in those markets to improve going forward.
During the first quarter, we took two important steps in developing Telenor. We announced the disposal of our mobile operations in Central and Eastern Europe, which enables us to focus on developing our businesses in Scandinavia and Asia. We also strengthened digital positions by entering a strategic partnership to develop our financial services business in Pakistan. In Thailand, an important milestone was reached yesterday with the signing of the 2.3 GHz spectrum agreement.
In summary, another solid quarter and we continue our consistent execution of the strategy,’’ said Telenor Group Chief Executive Officer Sigve Brekke.
|NOK (in millions)||Q1 2018||Q1 2017||Year 2017|| Q1 2018
|Revenues||27 113||27 596||112 069||27 138|
|Organic revenue growth (%)||-1.5||0.3||0.5|
|Subscription and traffic revenues||21 157||21 177||86 314||21 027|
|Organic subscription and traffic revenue growth (%)||1.0||1.2||2.4|
|EBITDA before other income and other expenses||11 309||10 504||44 694||11 330|
|EBITDA before other income and other expenses/Revenues (%)||41.7||38.1||39.9||41.8|
|Net income attributable to equity holders of Telenor ASA||4 987||4 168||11 983||4 983|
|Capex excl. licences and spectrum/Revenues (%)||11.3||15.9||15.4||11.3|
|Free cash flow||2 575||2 166||24 867||2 575|
|Mobile subscriptions – Change in quarter/Total (mill.)||1.7||2.4||170||1.7|
Discontinued operations: Telenor India, Hungary, Montenegro & Serbia and Bulgaria, Telenor Common Operation, Telenor Microfinance Bank and Telenor Banka.
First quarter 2018 summary
- Total reported revenues fell by 2% to NOK 27.1 billion. On an organic basis, subscription and traffic revenues grew 1%.
- Organic EBITDA growth of 10%.
- Reported opex decreased by NOK 0.8 billion. Adjusted for currency effects, the reduction was NOK 0.7 billion or 7%.
- EBITDA before other items was NOK 11.3 billion, corresponding to an EBITDA margin of 41.7%, an increase of 4 percentage points from last year.
- Net income attributable to equity holders of Telenor ASA was NOK 5.0 billion, or NOK 3.35 earnings per share.
- Capex excluding spectrum and licences was NOK 3.1 billion, resulting in a capex to sales ratio of 11%.
- Free cash flow for the quarter was NOK 2.6 billion.
- For 2018, we expect an organic subscription and traffic revenue growth of 1-2%, and an organic EBITDA growth of 2-3%. Capex excluding licences and spectrum has been adjusted for the discontinuation of the Central and Eastern European operations, and is now expected to be NOK 17-18 billion.
Meera Bhatia (+47) 46 84 49 59, email@example.com
Press and analyst presentation
In connection with the publication of the financial results, a press and analyst conference will be held on Tuesday 24 April at 09:00 hrs Norwegian time/CET. The presentation, which will also be broadcast live via webcast, will be held in Auditorium Voice, Telenor Expo Visitor Centre at Fornebu near Oslo. CEO Sigve Brekke and CFO Jørgen C. Arentz Rostrup will present the results. The presentation will be held in English.
You may also call in and listen to the presentation over the phone. This service allows you to ask questions during the Q&A session at the end of the presentation. To participate in the conference call, please register before the conference starts by calling:
+47 2100 2610 (local Norway)
+46 (0)8 5033 6574 (local Sweden)
+44 (0)330 336 9105 (local UK)
+1 929-477-0353 (local US)
Please state confirmation code 9600829.
The quarterly report and the presentation are available here. https://www.telenor.com/investors/reports/2018/telenor-groups-results-for-the-1st-quarter-2018/