Modernisation yielding strong results

(Fornebu, 29 January 2020) “The fourth quarter results reflect overall solid performance for Telenor Group. During the quarter, subscription and traffic revenues increased by two percent and operating expenses decreased by six percent. As a result, EBITDA improved by five percent.In Norway, growth in mobile revenues continued with further ARPU improvement, and we were able to offset copper revenue decline with growth in fibre and fixed wireless access. One of our top priorities this year...

Fornebu, 29/01/2020 (informazione.it - comunicati stampa - telecomunicazioni)

(Fornebu, 29 January 2020) “The fourth quarter results reflect overall solid performance for Telenor Group. During the quarter, subscription and traffic revenues increased by two percent and operating expenses decreased by six percent. As a result, EBITDA improved by five percent.

In Norway, growth in mobile revenues continued with further ARPU improvement, and we were able to offset copper revenue decline with growth in fibre and fixed wireless access. One of our top priorities this year has been to return to growth in Thailand and Myanmar, and it is therefore reassuring to end the year with good performance in both markets. The positive developments in these markets were partly offset by price pressure in Sweden and a still challenging situation in Pakistan. In Bangladesh, we were able to serve our customers with innovative and high quality services despite 2019 being a year with an increasingly demanding business environment.

During the year our customer base increased by 12 million, resulting in a total base of 186 million. Throughout 2019, we have continued our strategic journey set out at the Capital Markets Day in 2017 with clear ambitions. Delivering on these ambitions over several years has given us the flexibility to further develop our portfolio, resulting in the acquisition of DNA in Finland in 2019. In accordance with our dividend policy, we will propose an ordinary dividend of NOK 8.70 per share for 2019.

Entering 2020, we will continue to focus on growth, efficiency and simplification, expecting organic subscription and traffic revenue growth of zero to two percent and organic EBITDA growth of two to four percent, supported by continued modernisation efforts. The capex to sales ratio, excluding licences and spectrum, is expected to be around 15 percent,” says Sigve Brekke, President and CEO of Telenor Group.

Fourth quarter and full year 2019 summary

Shareholder remuneration

Based on the performance during the year, the Board of Directors proposes an ordinary dividend of NOK 8.70 per share for 2019, to be declared by the Annual General Meeting (AGM) on 11 May 2020. The proposed dividend shall be split into two tranches of NOK 4.40 and NOK 4.30 per share, to be paid in May and October 2020 respectively, and represents a 4 percent increase per share compared to 2018.

Outlook for 2020

For 2020, we expect organic subscription and traffic revenue growth of zero to two percent and organic EBITDA growth of two to four percent. The capex to sales ratio, excluding licences and spectrum, is expected to be around 15 percent.

Press contact:
Tormod Sandstø, Director Media Relations, Telenor Group
M: +4790943215 | Tormod.Sandsto@telenor.com

The key figures and summary for the fourth quarter of 2019 are based on current Group structure and accounting standards as of 31 December 2018 (pre IFRS 16), unless otherwise stated. Please refer to Definitions on page 32 for descriptions of alternative performance measures. Some of the comments on the Group's financial results for the fourth quarter and year 2019 are made excluding DNA. Please refer to page 9 for the Group's consolidated figures in NOK for DNA.

The outlook for 2020 is based on Group structure as of 31 December 2019 and accounting standards as of 31 December 2019 (post IFRS 16).