All-time high EBITDA as transformation gains traction
(Thomson Reuters ONE) -
Once again, Telenor Group delivered a strong set of results, with an organic
mobile subscription and traffic revenue growth of 3% and continued EBITDA
expansion in the third quarter. The company reduced costs by NOK 0.4 billion,
achieved a record high EBITDA margin of 42% and reported a strong cash flow. Net
income was NOK 5.8 billion.
"We delivered a strong set of results. On an organic basis, growth in core
revenues, together with continued progress on our efficiency agenda, generated a
9% increase in EBITDA.
Execution of our business strategy is gaining traction. So far this year, our
team has achieved cost savings of 1 billion kroner, implying that our target for
2017 has already been met and further efficiency gains should be expected going
forward. The solid results, together with the proceeds from the completion of
the VEON sell-down, give us a free cash flow of 9.4 billion kroner for the
quarter.
Our next steps are to continue transforming our business by focusing on
digitalising the core, improving efficiency across the company and nurturing
growth, where we see reassuring trends and potential. In order to further
improve our services and remain competitive, we aim to leverage new technologies
and make responsible use of our data for the benefit of our customers. We will
maintain our focus on digitalising our networks and customer interactions, which
are two aspects that we believe are critical to achieving our ambitions and
ensuring that our services are value adding for our customers,'' said Sigve
Brekke, Chief Executive Officer of Telenor Group.
Key Figures
+-------------------------+-------+-------+--------------+-----------+---------+
|NOK (in millions) | | |First 9 months| First 9 | |
| |Q3 2017|Q3 2016| 2017 |months 2016|Year 2016|
+-------------------------+-------+-------+--------------+-----------+---------+
|Revenues | 30 735| 31 249| 92 663| 93 669| 125 395|
+-------------------------+-------+-------+--------------+-----------+---------+
|Organic revenue growth | 1.0| 1.3| 1.1| 0.8| 0.8|
|(%) | | | | | |
+-------------------------+-------+-------+--------------+-----------+---------+
|EBITDA before other | 12 976| 12 307| 37 157| 35 317| 45 966|
|income and other expenses| | | | | |
+-------------------------+-------+-------+--------------+-----------+---------+
|EBITDA before other | 42.2| 39.4| 40.1| 37.7| 36.7|
|income and other | | | | | |
|expenses/Revenues (%) | | | | | |
+-------------------------+-------+-------+--------------+-----------+---------+
|Net income attributable | 5 756|(4 821)| 9 758| 546| 2 832|
|to equity holders of | | | | | |
|Telenor ASA | | | | | |
+-------------------------+-------+-------+--------------+-----------+---------+
|Capex excl. licences and | 12.4| 15.6| 13.8| 16.1| 17.4|
|spectrum/Revenues (%) | | | | | |
+-------------------------+-------+-------+--------------+-----------+---------+
|Capex/Revenues (%) | 16.1| 16.0| 16.3| 19.8| 20.2|
+-------------------------+-------+-------+--------------+-----------+---------+
|Free cash flow | 9 426| 9 064| 21 539| 8 792| 10 300|
+-------------------------+-------+-------+--------------+-----------+---------+
|Mobile subscriptions - | 1.9| (0.7)| 176| 166| 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.
Third-quarter 2017 summary
* Total organic revenues increased by 1%. Organic mobile subscription &
traffic revenues increased by 3%.
* Reported EBITDA before other items was NOK 13 billion, corresponding to a
record high EBITDA margin of 42%, an increase of 3 percentage points from
last year.
* Net income attributable to equity holders of Telenor ASA was NOK 5.8
billion.
* Capex excluding spectrum licences was NOK 3.8 billion, resulting in a capex
to sales ratio of 12%.
* Free cash flow for the quarter was NOK 9.4 billion.
Outlook
* Based on the performance in the first nine months of 2017 and our current
expectations for the remainder of the year, we keep the financial guidance
for 2017. We expect organic revenue growth in the range of 1% to 2%, EBITDA
margin of 38% to 39% and capex to sales ratio excluding spectrum licences of
15% to 16%.
Media Contact
Meera Bhatia, mobile (+47) 46 84 49 59, meera.bhatia(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 Wednesday 25 October 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 2350 0296 (local Norway)
+46 (0) 8 5664 2793 (local Sweden)
+44 (0) 330 336 9411 (local UK)
+1 719 325 2202 (local US)
Please state the confirmation code: 5627402.
Material
The quarterly report and the presentation are available
here. https://www.telenor.com/investors/financial-calendar/2017/telenor-groups-
results-for-the-3rd-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
Unternehmensinformation / Kurzprofil:
Datum: 25.10.2017 - 07:00 Uhr
Sprache: Deutsch
News-ID 565097
Anzahl Zeichen: 7639
contact information:
Town:
OSLO
Kategorie:
Business News
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