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• Free Cash Flow: NOK13.3 billion in 2024, exceeding proposed dividend payments.

• EBITDA Growth: 6% in the Nordics, 3.5% for the group in 2024.

• Service Revenue Growth: 3.3% for the group in 2024; 4.6% mobile service revenue growth in the Nordics.

• CapEx to Sales: 16% for the group in 2024, 19% in Q4.

• Net Income: EPS of NOK1.27 for Q4 and NOK13.88 for the full year.

• Dividend Proposal: NOK9.60 per share for 2024.

• Leverage Ratio: 2.4, slightly above the target range of 1.8 to 2.3.

• Nordic Mobile ARPU Growth: 4.9% in Norway.

• Bangladesh Revenue Correction: NOK90 million negative impact.

• Free Cash Flow Before M&A: NOK11.4 billion in 2024.

• 2025 Free Cash Flow Outlook: Around NOK13 billion before M&A.

• Warning! GuruFocus has detected 7 Warning Signs with TELNF.

Release Date: February 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Telenor ASA (TELNF) reported strong free cash flow of NOK13.3 billion in 2024, exceeding proposed dividend payments.

• The company achieved a 6% EBITDA growth in the Nordics, driven by successful transformation efforts.

• Telenor ASA (TELNF) made significant progress in reducing Scope 1 and 2 emissions, aligning with its ESG agenda.

• The company maintained a strong balance sheet and manageable maturity profile, despite a slight increase in net leverage.

• Telenor ASA (TELNF) expects to deliver free cash flow before M&A of around NOK13 billion in 2025, indicating strong financial visibility.

Negative Points

• The macroeconomic situation in Bangladesh negatively impacted group results, with no immediate recovery in consumer spending.

• Service revenue growth in Q4 was affected by one-offs and macroeconomic challenges, particularly in Bangladesh.

• The company faced a VAT-related case in Norway, which slightly dented fixed revenues.

• Telenor ASA (TELNF) experienced a sequential increase in net leverage to 2.4, driven by dividend payments and unfavorable FX impacts.

• The regulatory approval process in Pakistan is delayed, potentially affecting the timing of strategic deals.

Q & A Highlights

Q: Can you clarify what is considered core and non-core for Telenor, especially regarding your assets in Asia and infrastructure? A: Our current strategy focuses on four business areas, each with distinct strategies to maximize shareholder value. In Asia, we aim to develop our assets through different structures, while in the Nordics, everything is considered core. We focus on IoT and cybersecurity in AMP and will evaluate any inorganic opportunities that arise.