Telenor raises full-year outlook as Q3 earnings beat expectations

By Jesus Calero

(Reuters) – Norwegian telecom operator Telenor raised its full-year outlook on Wednesday after it reported third-quarter earnings slightly ahead of market expectations.

The company said in a statement that its earnings before interest, tax, depreciation and amortisation (EBITDA) before other items fell to 9.21 billion crowns ($840.08 million) in the July to September quarter, from 9.25 billion a year earlier.

That was slightly above analysts’ expectations in a consensus poll provided by the company.

It now expects 3%-4% organic growth in Nordic service revenues, up from low-to-mid single digits earlier, around 6% Nordic EBITDA growth from mid-single digit earlier, and free cash flow of NOK 9.5-10 billion from the previous NOK 9-10 billion.

Telenor said the outlook reflects confidence in Nordic growth, driven by upselling strategies and enhanced services, despite macroeconomic setbacks in Bangladesh.

“Following social unrest that led to the toppling of the (Bangladesh) government, we were forced to close our mobile data network,” Telenor CEO Sigve Brekke said in a statement.

Although the network reopened after the new government took over, key economic sectors remain partially closed, and recovery in Bangladesh will take time, he added.

Telenor’s operations in Bangladesh, under the brand Grameenphone, have been significant contributors to the company’s total revenues, at nearly 18% in the third quarter.

Meanwhile, Telenor’s Nordics business area saw strong organic service revenue growth, driven by a “more-for-more” pricing strategy that enabled the company to enhance service offerings while justifying higher prices.

It added net mobile subscribers across the Nordic region, which contributed to revenue growth despite competitive pressures, particularly in the large and medium enterprise segments.

($1 = 10.9469 Norwegian crowns)

(By Jesus Calero in Gdansk; Editing by Mrigank Dhaniwala)