Delivering critical services in demanding times

Our operating model has given us flexibility to manage operations, cost and investments, contributing to an EBITDA growth of 1 percent and free cash flow of NOK 4 billion in the quarter. As expected, lockdowns have affected prepaid markets in Asia and global roaming revenues negatively. Combined with a reduction in new sales, this led to a decline in organic subscription and traffic revenues of 4 percent, which was offset by an opex reduction of 12 percent. The financial results this...

(Fornebu, 16/07/2020 (informazione.it - comunicati stampa - telecomunicazioni)

Our operating model has given us flexibility to manage operations, cost and investments, contributing to an EBITDA growth of 1 percent and free cash flow of NOK 4 billion in the quarter. As expected, lockdowns have affected prepaid markets in Asia and global roaming revenues negatively. Combined with a reduction in new sales, this led to a decline in organic subscription and traffic revenues of 4 percent, which was offset by an opex reduction of 12 percent. The financial results this quarter are positively impacted by the strong performance in our operations in Norway and Finland, while Bangladesh and Pakistan, as expected, remain the most challenged prepaid markets.

Our strategy of growth, modernisation and responsible business has provided us with the ability to deliver critical services and manoeuvre in these demanding times. Going forward, we will use this experience to further enhance the execution of our modernisation journey. For 2020, we expect a low single digit percent decline in subscription and traffic revenues, stable organic EBITDA and around 13 percent capex to sales. We will continue to focus on cost management and capex to secure resilience in cash flow.»

Sigve Brekke, President and CEO, Telenor Group

Second quarter 2020 summary

Press contact:

Tormod Sandstø, Director Media Relations, Telenor Group

M: +4790943215 | Tormod.Sandsto@telenor.com

Please refer to Definitions on page 27 for descriptions of alternative performance measures. Some of the comments on the Group's financial results for the second quarter 2020 are made excluding DNA. Please refer to page 9 for the Group's consolidated figures in NOK for DNA.