Telenor reports strong results and solid cash flow in second quarter 2017
(Thomson Reuters ONE) -
"We deliver a strong set of results for the second quarter with improved revenue
growth, double-digit EBITDA uplift and strong cash flow generation. Both the
EBITDA and the EBITDA margin are all-time high this quarter. We were able to
reduce our costs by NOK 0.6 billion and we saw margin expansion in all our
business units. The robustness of our Norwegian operation, the strong revenue
growth in Bangladesh and the return to growth in Thailand were amongst the
highlights for the quarter.
At the Capital Markets Day in February, we shared our strategic ambitions
towards 2020, highlighting continued growth, improved efficiency and
simplification as key drivers for value creation. I am pleased to see that we
have taken several steps during the first six months of the year to execute on
this strategy.
As a result of the achievements in the first half of the year, we are stepping
up our efficiency ambitions and raise the EBITDA margin guidance for 2017. With
rapid changes in customer behaviour and technology advances, continued cost
reductions will be necessary in the coming years.
In line with our simplification agenda, we sold our online classifieds positions
in Latin America and continued the sell down of VEON in the quarter. Following
proceeds from recent transactions combined with a solid balance sheet, the Board
has decided to distribute parts of these funds to shareholders through a 2%
share buyback programme."
- Sigve Brekke, President and CEO, Telenor Group
KEY FIGURES TELENOR GROUP
+------------------------+-------+-------+-------------+-------------+---------+
|NOK (in millions) | | | First half | First half | |
| |Q2 2017|Q2 2016| year 2017 | year 2016 |Year 2016|
+------------------------+-------+-------+-------------+-------------+---------+
|Revenues |31 470 |30 926 |61 927 |62 420 |125 395 |
+------------------------+-------+-------+-------------+-------------+---------+
|Organic revenue growth |2.1 |0.0 |1.2 |0.7 |0.8 |
|(%) | | | | | |
+------------------------+-------+-------+-------------+-------------+---------+
|EBITDA before other |12 719 |11 381 |24 181 |23 010 |45 966 |
|income and other | | | | | |
|expenses | | | | | |
+------------------------+-------+-------+-------------+-------------+---------+
|EBITDA before other |40.4 |36.8 |39.0 |36.9 |36.7 |
|income and other | | | | | |
|expenses/Revenues (%) | | | | | |
+------------------------+-------+-------+-------------+-------------+---------+
|Net income attributable |(167) |1 111 |4 001 |5 367 |2 832 |
|to equity holders of | | | | | |
|Telenor ASA | | | | | |
+------------------------+-------+-------+-------------+-------------+---------+
|Capex excl. licences and|14.0 |16.3 |14.4 |16.3 |17.4 |
|spectrum/Revenues (%) | | | | | |
+------------------------+-------+-------+-------------+-------------+---------+
|Capex/Revenues (%) |17.9 |27.2 |16.4 |21.8 |20.2 |
+------------------------+-------+-------+-------------+-------------+---------+
|Free cash flow |9 946 |497 |12 113 |(272) |10 300 |
+------------------------+-------+-------+-------------+-------------+---------+
|Mobile subscriptions - |1.9 |2.7 |174 |167 |170 |
|Change in quarter/Total | | | | | |
|(mill.) | | | | | |
+------------------------+-------+-------+-------------+-------------+---------+
With effect from the first quarter 2017, Telenor India is treated as an asset
held for sale and discontinued operations in Telenor's financial reporting.
SECOND QUARTER 2017 SUMMARY
* Total revenues increased by 2% to NOK 31.5 billion. Reported mobile
subscription & traffic revenues increased by 3%.
* Reported EBITDA before other items increased by 12% to NOK 12.7 billion,
corresponding to an EBITDA margin of 40%, which is an increase of 4
percentage points from last year.
* Reported capex excluding spectrum licences was NOK 4.4 billion, resulting in
a capex to sales ratio of 14%.
* Free cash flow for the quarter was NOK 9.9 billion.
FINANCIAL OUTLOOK 2017
Based on the performance in the first half of 2017 and our current expectations
for the remainder of the year, we revise the financial guidance for 2017. We
lift the EBITDA margin guidance to 38-39%, from previously around 37%. We still
expect an organic revenue growth in the range of 1-2% and capex to sales ratio
excluding spectrum licences of 15-16%.
Media Contact:
Severin Roald, Mobil: +47 92 03 03 33, Severin.roald(at)telenor.com
Investor Relations Contacts:
Marianne Moe, mobile: (+47) 91 61 76 31, marianne.moe(at)telenor.com
Helge Øien, mobile: (+47) 91 31 92 42, helge.oien(at)telenor.com
Press and analyst presentation
In connection with the publication of the financial results, a press and analyst
conference will be held on Monday 17 July at 09:00 hrs Norwegian time/CET. The
presentation, which will also be broadcast live via webcast, will be held in
Auditorium Voice, Telenor Expo Visitor Centre at Fornebu near Oslo. CEO Sigve
Brekke and CFO Jørgen C. Arentz Rostrup will present the results. The
presentation will be held in English.
You may also call in and listen to the presentation over the phone. This service
allows you to ask questions during the Q&A session at the end of the
presentation. To participate in the conference call, please register before the
conference starts by calling +47 21002610 and state the confirmation code:
9702819
Material
The quarterly report and the presentation are available here.
https://www.telenor.com/investors/reports/2017/telenor-groups-results-for-the-
2nd-quarter-2017/
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Telenor via GlobeNewswire
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