Global telecom operator Telenor Group said its Capex (capital spending) excluding licences and spectrum will be NOK 17-18 billion or $2.156-$2.283 billion in 2018.
The company made a revision in the Capex plan in the wake of selling its Central and Eastern European operations.
Telenor said Capex excluding spectrum and licences was NOK 3.1 billion, resulting in a Capex to sales ratio of 11 percent, in Q1 2018.
“We took two important steps in developing Telenor. We announced the disposal of our mobile operations in Central and Eastern Europe. We strengthened digital positions by entering a strategic partnership to develop our financial services business in Pakistan,” said Telenor Group CEO Sigve Brekke.
Telenor said its revenues fell 2 percent to NOK 27.1 billion or $3.437 billion. The main achievement for Telenor was the 7 percent reduction in Opex.
EBITDA before other items was NOK 11.3 billion with an EBITDA margin of 41.7 percent, an increase of 4 percentage points.
Net income of Telenor was NOK 5.0 billion, or NOK 3.35 earnings per share.
“We expect an organic subscription and traffic revenue growth of 1-2 percent, and an organic EBITDA growth of 2-3 percent in 2018,” Telenor said.
# Drive digital transformation to ensure future growth and customer experience
# Continue delivering on cost agenda, building on 2017 momentum
# Maintain market positions in Norway
# Secure spectrum and infrastructure solution in Thailand
Telenor is targeting 20-30 percent cost savings by setting up common IT & Network delivery centre for three business units by July. NOK 0.7 billion will be the savings by delivering global category management through Telenor Procurement Company (TPC). Telenor aims to manage 75 percent of external spend in 2020.
As part of the Telenor strategy on business model simplification for global operations, Telenor Sweden is continuing its positive NPS journey. Number of price plans in Sweden reduced by 80 percent.
Telenor, as part of the digital transformation strategy, has reduced call center volumes by 40 percent as compared with 2015. The number of MyTelenor users has reached more than 11 million. Telenor said the contextual marketing engine is live in six markets driving digital distribution.