Telenor ASA — Earnings Release 2019

Jul 14, 2019

Grameenphone second quarter 2019 results

Grameenphone second quarter 2019 results

Telenor Group’s subsidiary in Bangladesh, Grameenphone, has today announced its results for the second quarter 2019. Telenor’s consolidated figures in NOK million are as follows:

Q219 Q218

Revenues 3,683 3,110

EBITDA before other items 1,992 1,871

EBITDA 1,988 1,876

Operating profit 1,452 1,328

CAPEX excl. spectrum licences 384 427

Subscription and traffic revenues in local currency increased by 13%. The reported EBITDA margin was 54%, while the underlying margin was 62%. During the quarter the number of subscriptions increased by 1.277 million to 75.330 million.

Grameenphone has discovered some errors related to regular commission payments for prior years. Due to the materiality of this effect, Grameenphone has chosen to restate their historical financials. For Telenor Group, this will be provided for as a one-time correction in the second quarter 2019. The EBITDA is negatively impacted by NOK 299 million, while net profit is impacted by NOK 622 million.

According to the new accounting standard IFRS 16, the figures in NOK million for the second quarter 2019 are as follows:

Q219

Revenues 3,683

EBITDA before other items 2,075

Operating profit 1,475