Telecomunicazioni
Steady strategy execution continues to yield results
(Fornebu, 23 October 2019) “The performance in the third quarter reflects continued strong execution on our strategy, focusing on growth, efficiency and simplification. Overall, the Group delivers an almost flat organic subscription and traffic revenue growth and organic EBITDA decline of 2%, when adjusting for project costs this quarter and non-recurring items last year. Our cost base remained stable, excluding DNA and project costs.
The modernisation in Norway is progressing according to plan, and we see a 3% mobile subscription and traffic revenue growth combined with a 5% reduction in operating expenses this quarter. In Thailand and Myanmar, the momentum seen earlier in 2019 continued and both operations have now returned to positive subscription and traffic revenue growth. However, headwinds in Pakistan as a result of the telecom tax re-introduction and a difficult macroeconomic environment have made the situation locally challenging.
During the quarter we have successfully concluded the acquisition of DNA in Finland. The mandatory tender offer period ended on 10 October and resulted in an ownership share of 97.96 percent. We have started to onboard DNA to our procurement processes to materialise synergies, and we are now looking for opportunities to expand service offerings to Finnish business customers.
Recently, we have also taken further steps on our simplification agenda. Yesterday, we announced that we will be entering into a joint venture with Nordic Entertainment Group, combining our satellite-based entertainment businesses to extract synergies and deliver enhanced customer experience.
Based on the performance so far this year and our expectations for the fourth quarter, we maintain our outlook for 2019. Execution on our strategic agenda remains our focus and key driver for value creation going forward,” said Sigve Brekke, President and CEO, Telenor Group.
Based on the performance so far this year and our expectations for the fourth quarter, we maintain our outlook for 2019. We expect organic subscription and traffic revenue growth at around the 2018 level and a low single digit organic EBITDA decline. Capex excluding licences and spectrum is expected to be in the range of NOK 16-17 billion, excluding DNA.
The key figures and summary for the third 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 31 for descriptions of alternative performance measures.
Some of the comments on the Group's financial results for the third quarter 2019 are made excluding DNA. Please refer to page 8 for the Group's consolidated figures in NOK for DNA.
The outlook for 2019 is based on Group structure as of 30 September 2019, but excludes DNA and project costs related to the acquisition of DNA and the merger discussions with Axiata in Asia.
Presentation of of Q3 results: Wednesday 23 October, 0900 CET / 0800 UK TIME
To view the webcast, visit; https://t.expo.no/PJaBqk
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Visit www.telenor.com/Q3-2019 to read the report.
A separate press meeting will be held at 1100 CET at Telenor Expo Visitor Centre, Snarøyveien 30, Fornebu. The media session will be held in Norwegian. To RSVP, please email: Jonathan.Higgins@telenor.com
Øystein Myrvold
Tel: +47 992 30 460
oystein.myrvold@telenor.com
Håkon Hatlevik
Tel: +47 901 46 070
hakon.hatlevik@telenor.com
Jonathan Higgins
Tel: +47 9011 06 06
jonathan.higgins@telenor.com
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