Telenor Group has announced results for first quarter of 2017 which shows 0.2% organic revenue growth and 2.1% increase in mobile subscription base. A lot has happened for Telenor Group in the past few months. The biggest change has been its exit from Indian Market.
The financial outlook for 2017 has been adjusted to reflect the new Group structure with India presented as discontinued operations. Telenor expects an organic revenue growth in the range of 1% to 2% and an EBITDA margin of around 37%. The capex to sales ratio excluding licenses is expected to be 15 % to 16%.
“I’m pleased to see Telenor continuing to deliver organic EBITDA growth, while revenues were stable in the first quarter. Highlights were the strong data consumption in emerging Asia and the solid fiber momentum in Norway as well as Sweden. It has been a busy quarter, as we have introduced new and improved mobile offers in several markets, with encouraging customer reception. In Thailand and Malaysia, this supported double-digit postpaid growth, and we are actively working to mitigate the continued intense competition in the prepaid market,’’ says Sigve Brekke, CEO of Telenor Group.
First quarter 2017 summary
- Total revenues decreased by 3% to NOK 30.5 billion, while organic revenues remained at par with last year. Mobile subscription & traffic revenues increased by 1% on an organic basis.
- EBITDA before other items decreased by 1% to NOK 11.5 billion, corresponding to an EBITDA margin of 38%, an increase of 1 percentage point from last year.
- Organic EBITDA increased by 3%. Adjusted for a one-time positive effect from Telenor Broadcast during the first quarter of 2016, the organic EBITDA growth was 5% year-on-year.
- Capital expenditure excluding licenses and spectrum was NOK 4.5 billion, resulting in a capex to sales ratio of 15%.
- Free cash flow for the quarter was NOK 2.2 billion.