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Telenor Group net profit slumps in 3Q22 on forex losses

26 Oct 2022

Norway’s Telenor Group has said that despite seeing ‘positive trends for mobile service revenues in the Nordic region’ in Q3 2022, high energy prices, especially in Denmark, Norway and Pakistan, ‘continue to be a headwind’. Presenting its financial results for the third quarter of 2022, the group reported a total turnover of NOK28.428 billion (USD2.7 billion), up from NOK27.411 billion in the corresponding period of 2021. Service revenues were up 2.5% in organic terms, meanwhile, reaching NOK21.914 billion in 3Q22, compared to NOK21.496 billion a year earlier.

In terms of other key financial indicators, Telenor Group’s reported EBITDA before other income and other expenses totalled NOK13.059 billion (3Q22: NOK12.856 billion), with the company saying that although an increase in energy cost of NOK400 million impacted EBITDA development negatively by three percentage points, this was more than offset by a one-time effect related to the ‘reversal of SIM tax provision in Pakistan of [NOK600 million] following a High Court decision in favour of Telenor Pakistan’. Meanwhile, net income stood at NOK1.549 billion in 3Q22, representing a significant drop from the NOK2.642 billion reported in 3Q21, due to the impact of currency losses mainly linked to the strengthening of the US dollar against the Norwegian krone.

Telenor Group closed out September 2022 with a total consolidated mobile subscription base of 172.39 million, up from 172.06 million a year earlier, but down from the 174.98 million recorded at end-June 2022. The company noted that the quarter-on-quarter reduction was mainly driven by its Asian division, with its subsidiaries in Bangladesh and Pakistan reporting customer declines of 2.9 million and 800,000, respectively. The former was reportedly impacted by a ban on the sale of SIM cards, while the latter was affected by flooding and network outages.

Norway, GrameenPhone (GP), Telenor Group, Telenor Pakistan

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