Telenor raises full-year outlook as Q3 earnings beat expectations (updated)
30/10/2024 07:24
(Adds details in paragraphs 5-10)
By Jesus Calero
Oct 30 (Reuters) - Norwegian telecom operator Telenor
TEL.OL raised its full-year outlook on Wednesday after it
reported third-quarter earnings slightly ahead of market
expectations.
The company said in a statement that its earnings before
interest, tax, depreciation and amortisation (EBITDA) before
other items fell to 9.21 billion crowns ($840.08 million) in the
July to September quarter, from 9.25 billion a year earlier.
That was slightly above analysts' expectations in a
consensus poll provided by the company.
It now expects 3%-4% organic growth in Nordic service
revenues, up from low-to-mid single digits earlier, around 6%
Nordic EBITDA growth from mid-single digit earlier, and free
cash flow of NOK 9.5-10 billion from the previous NOK 9-10
billion.
Telenor said the outlook reflects confidence in Nordic
growth, driven by upselling strategies and enhanced services,
despite macroeconomic setbacks in Bangladesh.
"Following social unrest that led to the toppling of the
(Bangladesh) government, we were forced to close our mobile data
network," Telenor CEO Sigve Brekke said in a statement.
Although the network reopened after the new government took
over, key economic sectors remain partially closed, and recovery
in Bangladesh will take time, he added.
Telenor's operations in Bangladesh, under the brand
Grameenphone, have been significant contributors to the
company's total revenues, at nearly 18% in the third quarter.
Meanwhile, Telenor's Nordics business area saw strong
organic service revenue growth, driven by a "more-for-more"
pricing strategy that enabled the company to enhance service
offerings while justifying higher prices.
It added net mobile subscribers across the Nordic
region, which contributed to revenue growth despite competitive
pressures, particularly in the large and medium enterprise
segments.
($1 = 10.9469 Norwegian crowns)
(By Jesus Calero in Gdansk; Editing by Mrigank Dhaniwala)
((gdansk.newsroom@thomsonreuters.com +48 58 769 66 00;))