Halfway through 2019, strategic direction confirmed

(Fornebu, 16 July 2019)“The strategic agenda we initiated two years ago continued to bear fruit in the second quarter. Although organic subscription and traffic revenues declined by 1 percent, the EBITDA margin was 40 percent and we saw positive revenue development and effects from efficiency and modernisation programmes. Our underlying financial performance remains stable. Across our markets, results show that the momentum set at the start of the year continues. In Norway, we see mobile...

Fornebu, 16/07/2019 (informazione.it - comunicati stampa - telecomunicazioni)

(Fornebu, 16 July 2019) “The strategic agenda we initiated two years ago continued to bear fruit in the second quarter. Although organic subscription and traffic revenues declined by 1 percent, the EBITDA margin was 40 percent and we saw positive revenue development and effects from efficiency and modernisation programmes. Our underlying financial performance remains stable.

Across our markets, results show that the momentum set at the start of the year continues. In Norway, we see mobile ARPU growth of 2 percent. Preparations for 5G are ongoing through pilots and network upgrades. There is good traction on fibre rollout and copper infrastructure replacement, which will enable customers to connect faster and more reliably.

In Thailand and Myanmar, we have seen improved revenue growth during the year. Investments made in Thailand are showing results, building a foundation for future growth. Subscription and traffic revenue growth in Bangladesh was 13 percent. During the quarter, 2.3 million new customers joined our networks globally.

Our acquisition of a majority stake in Finland's DNA has been approved by the European Commission, and we expect completion of the deal in August. Following completion, we will launch a mandatory tender offer for the remaining shares in the company. In Asia, we continue to work on the potential combination with Axiata, with the aim to finalise an agreement within the third quarter of 2019.

Throughout the remaining half of the year, we will maintain operational momentum, continue to modernise our networks and create value for customers and shareholders,” said Sigve Brekke, President and CEO, Telenor Group.

Key figures for Telenor Group

 

Second quarter 2019 summary

Outlook for 2019

As previously communicated, dtac in Thailand is now included in the full-year guidance. In addition, the guidance takes into account an adjusted outlook from Digi as well as a provision in Bangladesh. Based on this and on the results so far this year, we expect subscription and traffic revenues at around the 2018 level and a low single digit EBITDA decline. Capex excluding licences and spectrum is still expected to be in the range of NOK 16-17 billion.

Media Contact

Jonathan Higgins, mobile: (+47) 9011 0606, jonathan.higgins@telenor.com

Investor Relations Contacts

Marianne Moe, mobile: (+47) 916 17 631, marianne.moe@telenor.com
Håkon Hatlevik, mobile (+47) 901 46 070, hakon.hatlevik@telenor.com

Presentation of Q2 results:

Q2 presentation – WEBCAST AND TELECONFERENCE ONLY

In connection with the publication of the financial results, a live stream for analysts, investors and journalists will be held on Tuesday 16 July at 09:00 hrs Norwegian time/CET. The presentation will be broadcast live via webcast only. CEO Sigve Brekke and CFO Jørgen C. Arentz Rostrup will present the results. The presentation will be held in English.

You may also call in and listen to the presentation over the phone. This service allows you to ask questions during the Q&A session at the end of the presentation. To participate in the conference call, dial:

Please state confirmation code 5507845, your name and company to the operator

For the Q&A session: to queue up for questions please press *1

Press meeting at Telenor Fornebu: 11:00 CET

At 11:00 hrs Norwegian time/CET, Telenor Group CEO Sigve Brekke, CFO Jørgen C. Arentz Rostrup and Telenor Norway CEO Petter-Børre Furberg will host a 60-minute media presentation and Q&A. This will be held in person in Norway Lounge, Telenor Expo Visitor Centre at Fornebu, near Oslo.

Material

The quarterly report and the presentation are available here: https://www.telenor.com/investors/reports/2019/telenor-groups-results-for-the-2nd-quarter-2019/

The key figures and summary for the second quarter of 2019 as well as the forward-looking statements are based on current Group structure and accounting standards as of 31 December 2018 unless otherwise stated. Please refer to Definitions on page 30 of the Q2 2019 Report for descriptions of alternative performance measures.

The outlook for 2019 is based on Group structure as of 30 June 2019 and excluding M&A costs related to the acquisition of DNA and the planned merger with Axiata in Asia.