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Telenor Group returns to profit in 1Q22 but revenues down 2% y-o-y

3 May 2022

Norway’s Telenor Group has released its financial results for the first quarter of 2022, reporting that whilst its mobile business had performed well, the overall three-month period had been ‘impacted by [its] strategic journey of investing in modern networks and structural transactions in Asia’. Further, the company noted that growth had been held back by its domestic fixed line business and ‘intensified’ competition in Thailand.

For the three months ended 31 March 2022 Telenor Group reported a total turnover of NOK27.009 billion (USD2.86 billion), down from NOK27.158 billion in the corresponding period a year earlier, with the strengthening of the Norwegian krone against all relevant currencies in the quarter have a negative impact of NOK600 million on revenues. Telenor did, however, say that organic revenue growth was 0.5% for the first quarter of 2022. Service revenues, meanwhile, declined by 2% year-on-year, to NOK20.879 billion, primarily due to negative currency effects.

In terms of other key financial metrics, Telenor reported EBITDA before other income and other expenses of NOK11.660 billion, down from NOK12.209 billion in Q1 2021, while the group’s net income for the period under review totalled NOK6.570 billion, reversing a net loss of NOK3.889 billion in 1Q21. CAPEX excluding licences and spectrum fees totalled NOK4.183 million in the first three months of 2022, up from NOK3.685 billion y-o-y.

With regards to operational indicators, Telenor reported a consolidated mobile subscription total of 173.017 million as of 31 March 2022, up from 168.541 million a year earlier. Of note, Bangladesh’s Grameenphone added around half a million subscriptions in the opening quarter of 2022, while DTAC in Thailand and Telenor Pakistan saw increases of around 300,000 and 100,000, respectively. By comparison, Malaysia’s Digi shed around 100,000 mobile subscriptions in the first three months of this year.

Commenting on the quarterly performance, Telenor Group CEO Sigve Brekke said: ‘I am especially pleased with the growth in mobile service revenues and ARPU across the Nordic operations. This confirms that providing quality networks and services in the world’s most advanced telecom markets creates growth opportunities. In Asia, we see solid growth in Bangladesh and Pakistan and the M&A transactions in Thailand and Malaysia are progressing through the necessary steps. The sale of Telenor Myanmar was closed during the final days of the quarter, concluding a challenging process in a very difficult situation.’

Norway, Telenor Group

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