In This Article:
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Service Revenue: NOK16.1 billion, up 2.1% year-on-year.
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EBITDA: NOK8.6 billion, growing 2% year-on-year.
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Free Cash Flow Before M&A: NOK3 billion.
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Adjusted EPS: NOK1.96, up 4% from the previous year.
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CapEx to Sales Ratio: 12.8%.
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Leverage Ratio: 2.2x.
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Nordics Service Revenue Growth: 2.3% year-on-year.
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Nordics EBITDA Growth: 5.8%.
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Asia Service Revenue: NOK4.4 billion, representing 1% growth.
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Asia EBITDA: NOK2.6 billion, down 1% year-on-year.
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Return on Capital Employed: 8% for the last four quarters.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Telenor ASA (TELNF) reported a strong financial performance in Q1 2025, with a free cash flow before M&A of NOK3 billion.
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The company achieved a 5.8% EBITDA growth in the Nordics, driven by a 3.9% increase in mobile service revenue and a 1% decline in OpEx.
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Telenor's Nordic mobile networks were recognized as the best in the region by OpenSignal, and Ookla awarded Telenor Norway as the fastest mobile and 5G network.
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The company is expanding its AI factory to meet the growing demand for sovereign and secure AI solutions, with plans to scale further.
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Telenor's defense communication subsidiary, KNL, signed a significant contract with Finnish and Swedish defense forces, indicating potential growth in the defense sector.
Negative Points
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The macroeconomic environment in Bangladesh remains challenging, impacting Telenor's performance in the region.
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Telenor faced a VAT case in Norway, which negatively affected service revenues and EBITDA numbers.
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In Malaysia, Telkom Digi experienced a soft quarter due to tough competition, affecting overall performance.
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The regulatory approval process for Telenor's planned divestment in Pakistan is taking longer than anticipated.
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Telenor experienced higher churn in Norway and Finland, with increased competition in the B2B market and a decline in fixed broadband subscribers.
Q & A Highlights
Q: Why did Telenor decide to stick with mid-single-digit guidance for Nordic EBITDA growth despite strong Q1 performance? A: Benedicte Schilbred Fasmer, Group CEO, explained that it's still early in the year, and there are fluctuations expected throughout the year. The company remains confident in its mid-single-digit guidance and will adjust as necessary as the year progresses. Torbjorn Wist, EVP & CFO, added that the cost allocation between Nordic and other categories contributed to the decision, with some costs reallocated to headquarters and other areas.