Telenor ASA — Earnings Release 2020

Feb 2, 2021

Telenor reports fourth quarter 2020 results

Telenor reports fourth quarter 2020 results

The year 2020 was marked by the global pandemic. In this unprecedented situation, Telenor accelerated the digitalization, managed to safeguard employees and maintained critical connectivity to customers. For the full year, Telenor delivered an organic EBITDA growth of 2 percent and a solid free cash flow of NOK 21 billion.

In the fourth quarter, we continue to deliver a strong performance in the Nordics. In Norway growth in mobile and new fixed services more than offset a shortfall of roaming and copper legacy revenues. In Finland revenue and EBITDA are growing as a result of our customers’ demand for higher data speeds, including our new 5G offerings. In Asia, pressure on the top line remains due to intense competition and impact from the pandemic, in particular in Thailand and Malaysia. For the Group, subscription and traffic revenues decreased by 3 percent, however our flexibility to manage cost and investments levels resulted in stable EBITDA and improved cash flow.

Entering 2021, we will maintain focus on our strategic priorities; growth, modernisation and responsible business. In the coming months, all our markets and especially our Asian subsidiaries will still be impacted by the spread of COVID-19 and government responsive measures. For the full year 2021, we expect organic subscription and traffic revenues and Ebitda to remain around 2020 level. We foresee a capex to sales ratio of 15-16 percent. Based on 2020 performance, the BoD propose a dividend of NOK 9.00 per share in line with our dividend policy.

Sigve Brekke, President and CEO of Telenor Group.

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