Telenor to focus on efficiency and mobile data growth

18 Sep 2013

Norwegian telecoms group Telenor has said that it will ‘focus on monetising on mobile data growth and improving efficiency’ with a view to driving topline growth. At the group’s 2013 Capital Markets Day, at which a number of the company’s executives outlined Telenor’s strategic direction and financial priorities, it reiterated its target of an operating cash flow of between NOK28 billion and NOK30 billion (USD4.7 billion-USD5.1 billion) in 2015. Notably, in a presentation detailing the group’s financial ambitions, chief financial officer Richard Olav stated that Telenor’s Indian subsidiary was on track to achieve operating cash flow break-even by the end of this year. Meanwhile, the executive also highlighted growth in revenues and gross profit, with turnover boosted by climbing subscriber numbers, particularly in Asia. Meanwhile, the group is also reportedly targeting gross operational expenditure (OPEX) savings of NOK5 billion, and has highlighted a number of factors which should enable it to achieve this goal, including: network strategy and new operating model in Norway; lower regulatory costs in Thailand; reduced backbone cost in Malaysia; and a reduction in capital expenditures following significant investments in 2013-2014.

With Telenor saying that a ‘key element’ in its growth strategy was to ‘bring Internet to all’, it has suggested that by tapping into unconnected subscribers it can drive revenue growth from mobile data.

Commenting on the group’s strategy and current situation, CEO Jon Fredrik Baksaas was cited as saying: ‘This year’s Capital Markets Day program shows that we continue to build on our strong regional footprint and market positions in Europe and Asia. Continued growth combined with improved efficiency is vital to reach our cash flow target. Mobile internet is a catalyst for growth for societies and individuals and must be accessible to everyone.’

Norway, Telenor Group