(Fornebu, 21 October 2020) «Telenor’s third quarter results highlight the strength of our operating model, which provides flexibility in managing operations of critical services during uncertain times. The overall performance was positively impacted by organisational modernisation and accelerated digitalisation programmes.
In the quarter, Telenor reported a 2 percent decline in subscription and traffic revenues due to a continued roaming shortfall and lower sales in Asia. However, this development was more than compensated by an opex reduction of 8 percent, resulting in an EBITDA growth of 4 percent and free cash flow of NOK 4 billion.
The results from the Nordic operations were strong this quarter. Telenor Norway delivers a unique combination of innovation and modernisation to their customers and see strong intake on their new speed based price plans. I am pleased to see increasing subscriber bases in Finland, Denmark and Sweden.
In Asia, Pakistan and Bangladesh show strong subscriber growth this quarter. Also this quarter we saw some impact from the COVID-19 pandemic on our business, primarily in Thailand and Malaysia. In Thailand, we experience continued effects from shortfall in tourism revenues while competition has increased in Malaysia. In Myanmar, SIM re-registrations affect the subscriber base.
Our strategy of growth, modernisation and responsible business has provided us with the ability to manoeuvre during these demanding times. We now experience a stronger EBITDA development and adjust our full year 2020 outlook to low single digit organic EBITDA growth whereas we maintain the low single digit percent decline in subscription and traffic revenue and capex to sales around 13 percent.»
Sigve Brekke, President and CEO, Telenor Group
KEY FIGURES TELENOR GROUP | Third quarter | First three quarters | Year | ||
NOK in million | 2020 | 2019 | 2020 | 2019 | 2019 |
Revenues | 30,005 | 28,424 | 91,862 | 81,929 | 113,666 |
Organic revenue growth (%) | -2.3 | 0.4 | -1.7 | 0.6 | 1.2 |
Subscription and traffic revenues | 22,903 | 21,724 | 70,523 | 62,591 | 85,954 |
Organic subscription and traffic revenue growth (%) | -2.3 | -0.1 | -1.4 | -0.1 | 0.4 |
EBITDA before other income and other expenses | 14,571 | 13,132 | 43,008 | 37,338 | 50,735 |
Organic EBITDA growth (%) | 3.6 | -7.2 | 2.4 | -4.8 | -2.7 |
EBITDA before other income and other expenses/Revenues (%) | 48.6 | 46.2 | 46.8 | 45.6 | 44.6 |
Net income attributable to equity holders of Telenor ASA | 4,527 | -679 | 9,652 | 5,999 | 7,773 |
Capex excl. licences and spectrum | 3,669 | 3,726 | 10,564 | 11,841 | 17,415 |
Total Capex | 4,067 | 3,759 | 11,052 | 11,881 | 18,075 |
Free cash flow before M&A | 3,895 | 2,789 | 10,554 | 3,283 | 3,831 |
Total Free cash flow | 4,372 | -11,660 | 11,725 | -10,258 | -18,998 |
Mobile subscriptions - Change in quarter/Total (mill.) | -2.1 | 5.2 | 180.3 | 183.4 | 186.0 |
Third quarter 2020 summary1
1 Please refer to Definitions on page 26 for descriptions of alternative performance measures. Some of the comments on the Group’s financial results for the third quarter 2020 are made excluding DNA. Please refer to page 9 for the Group’s consolidated figures in NOK for DNA.