UK markets closed
  • FTSE 100

    7,043.61
    +80.28 (+1.15%)
     
  • FTSE 250

    22,336.10
    +266.79 (+1.21%)
     
  • AIM

    1,236.38
    +11.54 (+0.94%)
     
  • GBP/EUR

    1.1602
    -0.0025 (-0.21%)
     
  • GBP/USD

    1.4102
    +0.0050 (+0.36%)
     
  • BTC-GBP

    34,831.93
    -28.91 (-0.08%)
     
  • CMC Crypto 200

    1,398.33
    +39.77 (+2.93%)
     
  • S&P 500

    4,173.85
    +61.35 (+1.49%)
     
  • DOW

    34,382.13
    +360.68 (+1.06%)
     
  • CRUDE OIL

    65.51
    +1.69 (+2.65%)
     
  • GOLD FUTURES

    1,844.00
    +20.00 (+1.10%)
     
  • NIKKEI 225

    28,084.47
    +636.46 (+2.32%)
     
  • HANG SENG

    28,027.57
    +308.90 (+1.11%)
     
  • DAX

    15,416.64
    +216.96 (+1.43%)
     
  • CAC 40

    6,385.14
    +96.81 (+1.54%)
     

Steady performance in the first quarter

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Telenor
·4-min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

(Fornebu, 4 May 2021) «Our digitalisation journey continued in the first quarter of 2021 enabling us to add 5 million subscribers and yielding an opex decrease of 7%. Despite a decline in subscription and traffic revenues of 4%, this enabled us to deliver an organic EBITDA decline of 2% and a free cash flow of NOK 3.8 billion.

The Nordic operations delivered a robust quarter with EBITDA growth in Finland and Denmark. Despite the pandemic impacting our Asian operations over the last twelve months, we have been able to adapt and deliver strong customer intake across our operations.

The recently announced merger discussions in Malaysia represents an important next step in Telenor Group’s strategy to strengthen its position and create value in Asia. The new entity will have size and capabilities to meet increasing expectations and demand from a digitally connected society.

In Myanmar, we see an irregular, uncertain, and deeply concerning situation. Since the military coup on 1 February 2021, Telenor’s focus has been on the safety and security of our employees, access to services for customers and continued transparency. Prolonged mobile internet restrictions have severely impacted the people of Myanmar and the country’s economy, illustrating the importance of connectivity services. Telenor calls on the authorities to immediately reinstate unimpeded communications and respect the right to freedom of expression and human rights.

Due to the worsening of economic and business environment outlook and a deteriorating security and human rights situation, we see limited prospects of improvement going forward. Based on this, we have fully impaired Telenor Myanmar with an amount of NOK 6.5 billion in the quarter.

With limited visibility on the development in the country, we have excluded Myanmar from our outlook. For the full year 2021, excluding Myanmar, we re-iterate the expectation of organic subscription and traffic revenues and EBITDA to remain around the 2020 level and a capex to sales ratio of 15-16%.»

Sigve Brekke, President and CEO, Telenor Group

KEY FIGURES TELENOR GROUP

First quarter

Year

NOK in million

2021

2020

2020

Revenues

28,873

30,953

122,811

Organic revenue growth (%)

-1.6

1.5

-2.3

Subscription and traffic revenues

21,715

23,867

93,439

Organic subscription and traffic revenue growth (%)

-4.0

1.8

-1.9

EBITDA before other income and other expenses

13,015

14,106

56,520

Organic EBITDA growth (%)

-2.2

2.6

1.7

EBITDA before other income and other expenses/Revenues (%)

45.1

45.6

46.0

Net income attributable to equity holders of Telenor ASA

-3,889

698

17,341

Capex excl. licences and spectrum

3,745

3,079

16,351

Total Capex

4,284

3,385

21,692

Free cash flow before M&A

2,992

2,664

12,542

Total Free cash flow

3,834

3,775

20,855

Mobile subscriptions - Change in quarter/Total (mill.)

5.0

-0.4

181.8

Fourth quarter 2020 summary1

  • The Group’s mobile subscriber base grew by 5 million, including 2 million added in Myanmar. The subscriber base was 187 million at the end of the quarter.

  • Subscription and traffic revenues decreased by 4% on an organic basis. Total reported revenues were NOK 28.9 billion, a decrease of NOK 2.1 billion.

  • Currency adjusted opex decreased by NOK 0.7 billion, or 7%. Reported opex decreased by NOK 1.1 billion.

  • Organic EBITDA decreased by 2%, as the decline in subscription and traffic revenues was only partly offset by the reduction in operating expenses. Reported EBITDA before other items was NOK 13.0 billion and the EBITDA margin was 45%.

  • Capex excluding licences and spectrum was NOK 3.7 billion, yielding a capex to sales ratio of 13%.

  • Reported net income was negative NOK 3.9 billion. Decrease in operating profit due to the impairment of Telenor Myanmar of NOK 6.5 billion and higher taxes were only partly offset by positive development in net financial items.

  • Total free cash flow was NOK 3.8 billion.

  • Leverage decreased to 1.8x at the end of the first quarter from 2.0x at the end of the previous quarter.

  • On 1 February 2021, the military of Myanmar declared a state of emergency and the overall situation is unstable. Due to the worsening of economic and business environment outlook and a deteriorating security and human rights situation, we see limited prospects of improvement going forward. As a consequence, an impairment loss of NOK 6.5 billion was recognised related to Telenor Myanmar.

____________________________________________

1 Please refer to Definitions on page 25 for descriptions of alternative performance measures.