Telenor 1Q Earnings Missed Forecasts But Guidance Maintained

By Dominic Chopping

Norwegian telecommunications provider Telenor on Thursday maintained full-year guidance despite posting a lower-than-expected first-quarter net profit.

The company posted a net profit of 18.15 billion kroner ($1.69 billion), compared with NOK6.57 billion a year earlier and versus a FactSet analyst forecast of NOK21.63 billion. The company registered a gain of NOK18.5 billion in the quarter after closing the merger of Thai telecom companies Total Access Communication and True Corp.

Adjusted earnings before interest, tax, depreciation and amortization--the company's preferred measure--was little-changed at NOK8.08 billion, as revenue rose 4.1% to NOK19.19 billion, Telenor said.

A company-compiled consensus had expected adjusted Ebitda of NOK9.99 billion on revenue of NOK24.59 billion.

"We have been able to demonstrate solid execution across all four business areas," Chief Executive Sigve Brekke said.

"The underlying mobile service revenue growth was 5%, and the fixed business is turning positive after completion of the copper decommissioning... Going forward, we will continue with our Nordic modernisation agenda to drive profitable growth."

For 2023, Telenor still expects low to mid-single-digit growth in both service revenue and Ebitda in the Nordics, with a capital expenditure-to-sales ratio of around 17%.

Overall, Telenor said it maintains its midterm ambitions.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

May 04, 2023 03:57 ET (07:57 GMT)

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