Telenor Group highlights positive revenue developments in Q2 results

16 Jul 2019

Norway’s Telenor Group has published its financials results for the quarter ended 30 June 2019, highlighting ‘positive revenue developments and effects from efficiency and modernisation programmes’, despite a decline in organic subscription and traffic revenues. In the three-month period under review Telenor generated a total turnover of NOK28.027 billion (USD3.31 billion), up 1.9% from NOK27.503 billion in the corresponding period of 2018; organic revenue grew 0.6% year-on-year. Subscription and traffic revenues totalled NOK21.526 billion, meanwhile, up 0.9% from NOK21.337 million in 2Q18, though the Norwegian group noted that organic subscription and traffic revenues fell 0.7% y-o-y, partly attributed to ‘the fixed legacy decline in Scandinavia of NOK300 million’.

EBITDA before other items stood at NOK11.087 billion in the second quarter of 2019, a figure which Telenor said represented a decline of 1.2% on an organic basis, with the reported EBITDA margin being 39.6%, down one percentage point y-o-y. Net income attributable to equity holders of Telenor Group reached NOK 3.095 billion, compared to NOK2.645 billion in 2Q18, with capital expenditure (excluding licences and spectrum) totalling NOK4.109 billion (2Q18: NOK3.666 billion).

In operational terms, Telenor Group reported a total mobile subscriber base of 178.3 million for end-June 2019, a figure representing annualised growth of 3.5%. Subsidiaries in Myanmar and Bangladesh saw notable gains, adding 1.4 million and 1.3 million new subscriptions, respectively, over the course of the second quarter, with such gains partly offset by customer losses in Pakistan (down around 400,000 quarter-on-quarter) and Thailand (down around 100,000 q-o-q).