Nordic telecom revenue outperforms, but profits at risk - Berenberg

Elisa Oyj

24/01/2024 13:36

** Berenberg says that though Nordic telecom operators have
outpaced competitors in terms of revenue growth, it sees
possible risks to consensus estimates for EBITDA
    ** "Nordic service revenue is trending at c3% yoy,
outperforming European trends by 200bp" says the broker, owing
to strong price increases, positive demand trends
    ** It highlights Telenor  TEL.OL  for its dividend
prospects, noting the Norwegian group's stronger service revenue
growth than in peers, cost efficiencies in Norway 
    ** ** However it notes that EBITDA has been "a more mixed
picture" for the Nordics groups, warning of potential risks to
results of Elisa  ELISA.HE  and Telia  TELIA.ST  
    ** Though Berenberg keeps "buy" for Elisa, it notes the
Finnish group's struggle with higher-for-longer rate interest
    ** Elisa as well as Tele2  TEL2b.ST  have also incurred
higher net costs from the Viaplay  VPLAYb.ST  collaboration that
phases out from Q4 2023
    ** Tele2 and Telia need to demonstrate stronger execution on
cost savings, the broker says, and keeps "hold" for both, citing
also challenges with wage inflation

 (Reporting by Agnieszka Oleńska)
 ((Agnieszka.Olenska@thomsonreuters.com;))