Telenor Achieves its Target in Lowering Capex Despite Growing 5G Coverage

Telenor has disclosed that it has achieved its target in lowering capital expenditure (Capex) figures despite expanding 5G coverage.
Capex of Telenor in 2023Telenor’s Capex reached NOK 12,731 million in 2023 vs NOK 13,560 million in 2022. Capex of Telenor has reached NOK 3,094 million in Q4 2023 from NOK 4,020 million in Q4 2022.

In the latest financial quarter, Telenor’s Capex, excluding leases, amounted to NOK 3.1 billion, resulting in a Capex to sales ratio of 14.8 percent. This represents a notable decline of six percentage points compared to the corresponding period last year.

Notably, in the Nordic region, Capex excluding leases reached NOK 2.3 billion, with a Capex to sales ratio of 15.6 percent. This investment surge was primarily fueled by the ongoing rollout of 5G technology and fiber optic network expansions in Norway.

For the entire fiscal year, Telenor’s Capex excluding leases totaled NOK 12.7 billion, with a Capex to sales ratio of 15.8 percent. The Nordic region maintained a consistent Capex to sales ratio of 16.7 percent, aligning with the company’s annual guidance.

Nordics revenue NOK 56.321 bn vs NOK 52.477 bn (up 7.3 percent)
Nordics Capex NOK 9.387 bn vs NOK 9.957 bn

Asia revenue NOK 20.199 bn vs NOK 20.973 bn ( down 3.7 percent)
Asia Capex NOK 2.307 bn vs NOK 2.373 bn

Infrastructure revenue NOK 3.399 bn vs NOK 3.427 bn (down 0.8 percent)
Infrastructure Capex NOK 834 million vs NOK 901 million

Amp revenue NOK 4.734 bn vs NOK 4.525 bn (up 4.6 percent)
Amp Capex NOK 196 bn vs NOK 325 bn

Regional Highlights:
Telenor Capex outlook for 2024Norway: Telenor’s supremacy in mobile networking was reaffirmed by Ookla for the sixth consecutive year, citing top-notch speed and coverage in both 4G and 5G networks. The quarter witnessed the modernization of 392 sites, propelling 5G population coverage to 81 percent by the end of 2023. Revenue growth, particularly from value-added services and strategic pricing initiatives, contributed to a 3 percent increase in total service revenue.

Sweden: Investments were primarily directed towards the modernization of the mobile network, including the decommissioning of 3G infrastructure. Notably, 5G population coverage reached 60 percent during the quarter.

Denmark: The deployment of 5G infrastructure in Denmark neared completion, achieving a remarkable population coverage of 93 percent by the year-end.

Finland: Continued investments in upgrading the mobile network were observed, with a focus on bolstering 4G and 5G networks. As a result, 5G population coverage surged to 94 percent.

Telenor’s service revenues for the quarter amounted to NOK 16.1 billion, marking a substantial increase of NOK 1.1 billion or 7 percent compared to the same period last year. The organic growth in service revenues stood at 4.9 percent. Additionally, the company reported an EBITDA before other items of NOK 8.5 billion, indicating a 3.9 percent increase on an organic basis.

For the full fiscal year, Telenor achieved service revenues of NOK 62.5 billion and an EBITDA before other items of NOK 34.6 billion, representing organic growth rates of 4.0 percent and 2.8 percent, respectively. The net income attributable to equity holders of Telenor ASA was reported at NOK 13.7 billion.

“Service revenues for the full year 2023 ended up at NOK 62.5 billion, corresponding to an organic increase of 4.0 percent compared to last year. EBITDA ended at NOK 34.6 billion, corresponding to organic growth of 2.8 percent compared to the year before. Total free cash flow amounted to NOK 15 billion,” Sigve Brekke, CEO of Telenor, said.