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Telenor ASA — Earnings Release 2020
Jul 16, 2020
3773_rns_2020-07-16_72a234f1-0293-4f45-a2e2-4e2850492775.html
Earnings Release
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Telenor reports second quarter 2020 results
Telenor reports second quarter 2020 results
This quarter has brought unprecedented challenges for our customers and employees, as societies in the regions Telenor operates in have endured the COVID-19 pandemic and the impact of measures taken to stop it. In such a situation, providing our customers with critical services and ensuring our employees’ health and safety has been our first priority. Despite the challenges, I am proud to say that during the past months, Telenor has taken a leap within digitalisation. We are now further increasing our focus on touch free operations, digital customer interactions and new ways of working.
Our operating model has given us flexibility to manage operations, cost and investments, contributing to an EBITDA growth of 1 percent and free cash flow of NOK 4 billion in the quarter. As expected, lockdowns have affected prepaid markets in Asia and global roaming revenues negatively. Combined with a reduction in new sales, this led to a decline in organic subscription and traffic revenues of 4 percent, which was offset by an opex reduction of 12 percent. The financial results this quarter are positively impacted by the strong performance in our operations in Norway and Finland, while Bangladesh and Pakistan, as expected, remain the most challenged prepaid markets.
Our strategy of growth, modernisation and responsible business has provided us with the ability to deliver critical services and manoeuvre in these demanding times. Going forward, we will use this experience to further enhance the execution of our modernisation journey.
Outlook for 2020
For 2020, we expect a low single digit percent decline in subscription and traffic revenues, stable organic EBITDA and around 13 percent capex to sales. We will continue to focus on cost management and capex to secure resilience in cash flow.
Sigve Brekke, President and CEO, Telenor Group
Investor Relations:
Øystein Myrvold, mobile: +47 99 23 04 60, [email protected]
Kristine Devold, mobile: +47 90 05 07 80, [email protected]