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Telenor ASA — Earnings Release 2017
Jul 17, 2017
3773_rns_2017-07-17_7360dbc5-5d6d-447f-94d9-0d62e78fb128.html
Earnings Release
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Telenor reports strong results and solid cash flow in second quarter 2017
Telenor reports strong results and solid cash flow in second quarter 2017
"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
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,
Investor Relations Contacts:
Marianne Moe
mobile: (+47) 91 61 76 31
Helge Øien
mobile: (+47) 91 31 92 42
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/