Telenor cuts revenue and Capex estimate for 2018

Telenor has slashed its estimate in revenue and Capex related investment for 2018 — due to its poor performance under CEO Sigve Brekke in the first 9 months.
Telenor Group Q3 2018 CapexTelenor said it is expecting 0-1 percent revenue growth in 2018 as against 1-2 percent growth expected earlier and 2.4 percent achieved in 2017. Telenor achieved 0.5 percent revenue rise in 9 months of 2018.

Telenor today said it will be spending NOK 16-17 billion in 2018 towards Capex as against the previous plan of investing NOK 17-18 billion. Telenor’s Capex in 2017 was NOK 17.3 billion. Telenor’s Capex in 9 months touched NOK 10.7 billion.
Telenor Q3 2018 OpexTelenor said its EBITDA growth will touch 3-4 percent in 2018 as against the previous target of 2-3 percent. Telenor’s EBITDA touched 9 percent in 2017. Telenor achieved EBITDA of 5.2 percent in 9 months of 2018.

“The Telenor team delivered another quarter of solid and consistent performance with stable revenues and a 6 percent organic EBITDA growth. The steps we have taken over the past two years have laid the foundation for continued value creation,” CEO Sigve Brekke said.

Telenor Q3 performance

Telenor said its mobile customer base grew for the first time in three years. The number of mobile subscriptions rose by 0.7 million to 173 million. The growth in Bangladesh was 2.2 million, offset primarily by reduction of 1 million in Myanmar, 0.3 million in Pakistan and 0.3 million in Thailand.

Telenor’s third quarter revenue rose 1 percent to NOK 27.6 billion.

Telenor’s Opex fell by NOK 0.3 billion or 3 percent through effect from efficiency initiatives particularly in Thailand, Scandinavia, Corporate Functions and other Group units.

EBITDA before other items was NOK 12.4 billion with an EBITDA margin of 45 percent, or 2 percentage points above last year. The increase was driven by continued opex reductions and reversal of provisions.

Capex excluding licences and spectrum was NOK 4.2 billion, resulting in a Capex to sales ratio of 15 percent in Q3. Capex drivers were network expansion in Thailand and Norway and targeted network rollout in Bangladesh and Pakistan.

Telenor has expanded its fibre network and connected close to 9,000 households during the third quarter of 2018.

Capex decreased by NOK 1.9 billion to NOK 12.6 billion in 9 months. The reduction in Capex was mainly due to deferred investments in Norway and lower spectrum acquisitions this year.