Telenor has announced notable achievements in terms of revenue in its key business areas for the second quarter of 2024.
The telecom operator’s service revenues have reached NOK 16.3 billion in April-June 2024, marking a 3.1 percent increase compared to the same period last year, thanks to price hike. The EBITDA before other items remained stable at NOK 8.8 billion, and net income was NOK 2.5 billion. Telenor does not have any strong presence in 5G at present.
“We realised the benefits of our strategy. Nordics team forged ahead with the transformation efforts, contributing to a flat Opex in the business area in the quarter, but also building a basis for more efficient operations,” Sigve Brekke, President & CEO Telenor Group, said in a statement
Telenor’s Opex increased by NOK 0.1 billion to NOK 6.880 billion during April-June 2024. Opex of Telenor increased by 4 percent or NOK 0.5 billion to NOK 13.584 billion in the first half of 2024. Growth in Opex was mainly driven by Asia, and Opex in the Nordics was stable.
Telenor said it would continue to upsell its products to existing customers on a “more-for-more” price basis and pursue adjustments of prices where it sees opportunities to do so.
The strategic upselling, which includes swift 4G to 5G shifts and unlimited data plans for heavy users, has fuelled Nordic service revenues and will remain a key focus moving forward, Telenor CEO Sigve Brekke told Reuters.
Regional and Segment Highlights
Nordics:
Service revenues grew by 3.7 percent to NOK 11.158 billion, with mobile service revenues increasing by 4.3 percent, driven by ARPU growth and a rise in subscribers in Finland.
Telenor Norway saw a 2 percent increase in service revenues to NOK 5.114 billion, with mobile ARPU growing by 6 percent. Despite a decline of 15,000 in mobile subscriptions, fixed broadband fibre subscriptions rose by 6,000.
Telenor Sweden experienced a 4 percent rise in service revenues to NOK 2.518 billion, supported by pricing initiatives and a larger mobile subscription base. Telenor Sweden’s investments remained driven by mobile network modernisation related to 5G rollout.
Telenor Denmark’s service revenues increased by 3 percent to NOK 1.099 billion. Telenor Denmark’s investments were lower than last year and continued to be driven by mobile network modernisation.
DNA in Finland reported an 8 percent increase in service revenues to NOK 2.45 billion, with mobile subscriptions growing by 26,000. DNA’s Capex remained stable from last year, mainly used for 5G rollout and IT modernisation.
Asia:
The region recorded a 6 percent increase in service revenues to NOK 4.778 billion, driven by growth in Bangladesh and Pakistan.
Grameenphone in Bangladesh added 2.3 million subscriptions, achieving a 6 percent rise in service revenue to NOK 3.823 billion. Grameenphone has 85 million mobile phone customers in Bangladesh.
Telenor Pakistan’s service revenues increased by 6 percent to NOK 955 million, despite a 5 percent decrease in the customer base.
True in Thailand reported a 6 percent growth in service revenue. True had 51 million mobile subscribers.
CelcomDigi in Malaysia saw a 1 percent decline. CelcomDigi had 20 million mobile phone customers on its network at the end of March.
Infrastructure and Amp:
Amp continued to expand, primarily through the IoT provider Connexion.
Capital Expenditure
Telenor’s capex excluding leases was NOK 3.1 billion, resulting in a capex to sales ratio of 15.4 percent, which is 1.6 percentage points lower than the same period last year.
In the Nordics, capex excluding leases amounted to NOK 2.2 billion, corresponding to a capex to sales ratio of 16.0 percent.
Overall, Telenor’s performance in Q2 2024 highlights its strong position and growth across various regions and segments, driven by strategic investments and market initiatives.
Baburajan Kizhakedath