Telenor Group has explained how the telecom operator made investment in telecom network during the first quarter of 2020.
Telenor said its Capex excluding licences and spectrum was NOK 3.1 billion in the quarter, representing Capex to sales ratio of 10 percent.
Telenor has reduced its Capex by NOK 1 billion as primarily a result of high investment in dtac Thailand last year and import restrictions in Bangladesh this year. In addition, lower speed on network investments in DNA Finland and Myanmar contributed to the low Capex level.
Telenor’s Capex in Norway touched NOK 1.339 billion (1.036 billion). Strong momentum on the fibre roll-out explained most of the 29 percent increase in Capex. Telenor continued the expansion of the mobile network and made general capacity investments in Norway.
Telenor’s Capex in Sweden was NOK 299 million (NOK 310 million) — primarily related to network and IT modernisation.
Telenor’s Capex in Denmark reached NOK 140 million (NOK 70 million).
Telenor’s Capex in DNA Finland was NOK 178 million focusing on 5G rollout.
Telenor’s Capex in Dtac Thailand was NOK 262 million (NOK 1.183 billion) focusing on strengthening the customer experience on both 3G and 4G by upgrading capacity in the network.
Telenor’s Capex in Digit Malaysia was NOK 314 million (NOK 356 million) focusing on 4G network expansion and increased capacity to support the customers’ data usage.
Telenor’s Capex in Grameenphone Bangladesh was NOK 44 million (NOK 425 million) due to continued import restrictions imposed by BTRC, which were partially lifted at the end of March 2020.
Telenor’s Capex in Pakistan touched NOK 361 million (NOK 386 million) driven by site roll-out, investments in network stability and battery replacement.
Telenor’s Capex in Myanmar touched NOK 87 million (NOK 204 million).
Telenor mobile customers
Telenor’s mobile subscription base decreased by 0.4 million to slightly below 186 million. Telenor added more than 1 million customers in both Myanmar and Pakistan. Telenor lost more than 1 million customers in both Grameenphone and dtac.
Mobile subscriber base in Digi Malaysia fell by 0.3 million. Telenor lost approximately 30,000 customers in Norway and Sweden each, Danish operation has reported a slight increase in its mobile subscription base for the first quarter.
Telenor reported revenues of NOK 31.0 billion, an increase of NOK 4.4 billion or 16 percent, of which NOK 2.4 billion were related to the consolidation of DNA in Finland and NOK 1.7 billion to currency development.
Reported Opex increased by NOK 1.3 billion, of which NOK 0.5 billion were related to currency development. EBITDA grew by 3 percent or NOK 0.3 billion, as a result of subscription and traffic revenue growth and opex reductions.
“In this extraordinary situation, we will continue to monitor the business closely and take measures ensuring operational performance and flexibility. We will maintain the strategic direction and cash flow focus communicated at our capital markets day in the beginning of March,” Telenor CEO Sigve Brekke said.