Telenor Raises Dividend, Expects Flat-to-Slightly-Higher Earnings This Year

By Dominic Chopping

Norwegian telecommunications provider Telenor ASA on Wednesday declared a higher full-year dividend, though it cautioned that top-line pressure in Asia remains because of intense competition and the impact from the pandemic, while full-year earnings are expected flat-to-slightly-higher on year.

The company posted a fourth-quarter net profit attributable to shareholders of 587 million kroner ($66.2 million), compared with NOK7.69 billion a year earlier, as earnings in the prior year were boosted by disposals.

Earnings before interest, tax, depreciation and amortization--the company's preferred measure--fell to NOK10.51 billion from NOK15.37 billion, as revenue fell 4.0% to NOK28.15 billion, the company said.

Analysts polled by FactSet had expected net profit of NOK2.39 billion and revenue of NOK28.07 billion.

Telenor declared a dividend of NOK9.30, a 3% increase from 2020.

The fourth-quarter mobile subscription base grew by 100,000 compared with the third quarter, to 172.2 million.

"Entering 2022, we will maintain our focus on returning to growth," the company said.

For 2022 and excluding its Digi unit in Malaysia, Telenor said it expects low-single-digits growth in service revenue, as well as earnings before interest, tax, depreciation and amortization around the 2021 level or slightly higher, and a capex-to-sales ratio of 16% to 17%.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

February 02, 2022 02:25 ET (07:25 GMT)

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