Telenor Group said its Capex excluding licences and spectrum will be NOK 16-17 billion or $2 billion in 2019 as compared with NOK 16.8 billion in 2018.
Investment in fiber network towards 5G-readiness in Norway will be one of the top priorities for Telenor Group in 2019. Telenor on Tuesday said it would select its 5G network vendor after completing the 5G trials in association with Nokia and Ericsson. Telenor has ruled out both Huawei and ZTE from their 5G network.
Telenor’s Capex spending excluding licences and spectrum reached NOK 6.1 billion in the fourth quarter of 2018 against NOK 5.162 billion in Q4 2017.
Capex excluding licences and spectrum was NOK 16.8 billion in 2018 against NOK 17.25 billion in 2017.
Capex to sales ratio was 22 percent in Q4 2018 and 15 percent in 2018.
Telenor said its Capex to sales ratio will drop to 15 percent in 2019-2020 from 15.2 percent in 2018 and 15.4 percent in 2017.
Telenor Group CEO Sigve Brekke said: “Halfway into the strategy plan we set out in 2017, we maintain our priorities and financial ambitions towards 2020.”
Telenor reported revenues of NOK 28.2 billion (–2 percent) in Q4 2018 as compared with NOK 28.678 billion in Q4 2017. Telenor posted revenue of NOK 110.396 billion in 2018 as against NOK 112.069 billion in 2017.
Reported Opex fell by NOK 0.1 billion or 1 percent in the quarter and NOK 1.7 billion in 2018.
Telenor under the guidance of Telenor CFO Jorgen C Arentz Rostrup is aiming for 1-3 percent reduction in Opex in 2019 after achieving Opex reduction of 3 percent in 2018 and 3.3 percent in 2017.
EBITDA before other items was NOK 10.3 billion in the fourth quarter with an EBITDA margin of 37 percent, 1 percentage point below last year. EBITDA fell 3 percent in the quarter, negatively impacted by cost increases in Thailand.
Telenor said EBITDA growth for the year 2018 was 3 percent and the EBITDA margin improved by 1 percentage point to 41 percent.
Net income of Telenor was NOK 1.2 billion, or NOK 0.81 per share in the quarter. For the year 2018, net income was NOK 14.6 billion, or NOK 9.93 per share.