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Monday, 17 July 2017

Telenor (NO) - Telenor reports strong results and solid cash flow in second quarter 2017


Telenor reports strong results and solid cash flow in second quarter 2017

"We deliver a strong set of results for the second quarter with improved revenue growth, double-digit EBITDA uplift and strong cash flow generation. Both the EBITDA and the EBITDA margin are all-time high this quarter. We were able to reduce our costs by NOK 0.6 billion and we saw margin expansion in all our business units. The robustness of our Norwegian operation, the strong revenue growth in Bangladesh and the return to growth in Thailand were amongst the highlights for the quarter.

At the Capital Markets Day in February, we shared our strategic ambitions towards 2020, highlighting continued growth, improved efficiency and simplification as key drivers for value creation. I am pleased to see that we have taken several steps during the first six months of the year to execute on this strategy.

As a result of the achievements in the first half of the year, we are stepping up our efficiency ambitions and raise the EBITDA margin guidance for 2017. With rapid changes in customer behaviour and technology advances, continued cost reductions will be necessary in the coming years.

In line with our simplification agenda, we sold our online classifieds positions in Latin America and continued the sell down of VEON in the quarter. Following proceeds from recent transactions combined with a solid balance sheet, the Board has decided to distribute parts of these funds to shareholders through a 2% share buyback programme."

- Sigve Brekke, President and CEO, Telenor Group


NOK (in millions) 

Q2 2017

Q2 2016

First half year 2017

First half year 2016

Year 2016


31 470

30 926

61 927

62 420

125 395

Organic revenue growth (%)






EBITDA before other income and other expenses

12 719

11 381

24 181

23 010

45 966

EBITDA before other income and other expenses/Revenues (%)






Net income attributable to equity holders of Telenor ASA


1 111

4 001

5 367

2 832

Capex excl. licences and spectrum/Revenues (%)






Capex/Revenues (%)






Free cash flow

9 946


12 113


10 300

Mobile subscriptions - Change in quarter/Total (mill.)






With effect from the first quarter 2017, Telenor India is treated as an asset held for sale and discontinued operations in Telenor's financial reporting.


  • Total revenues increased by 2% to NOK 31.5 billion. Reported mobile subscription & traffic revenues increased by 3%.
  • Reported EBITDA before other items increased by 12% to NOK 12.7 billion, corresponding to an EBITDA margin of 40%, which is an increase of 4 percentage points from last year.
  • Reported capex excluding spectrum licences was NOK 4.4 billion, resulting in a capex to sales ratio of 14%.
  • Free cash flow for the quarter was NOK 9.9 billion.


Based on the performance in the first half of 2017 and our current expectations for the remainder of the year, we revise the financial guidance for 2017. We lift the EBITDA margin guidance to 38-39%, from previously around 37%. We still expect an organic revenue growth in the range of 1-2% and capex to sales ratio excluding spectrum licences of 15-16%.

Media Contact:
Severin Roald, Mobil: +47 92 03 03 33, Severin.roald@telenor.com

Investor Relations Contacts:
Marianne Moe, mobile: (+47) 91 61 76 31, marianne.moe@telenor.com
Helge Øien, mobile: (+47) 91 31 92 42, helge.oien@telenor.com

Press and analyst presentation
In connection with the publication of the financial results, a press and analyst conference will be held on Monday 17 July at 09:00 hrs Norwegian time/CET. The presentation, which will also be broadcast live via webcast, will be held in Auditorium Voice, Telenor Expo Visitor Centre at Fornebu near Oslo. CEO Sigve Brekke and CFO Jørgen C. Arentz Rostrup will present the results. The presentation will be held in English.

You may also call in and listen to the presentation over the phone. This service allows you to ask questions during the Q&A session at the end of the presentation. To participate in the conference call, please register before the conference starts by calling +47 21002610 and state the confirmation code: 9702819

The quarterly report and the presentation are available here.


This announcement is distributed by Nasdaq Corporate Solutions (One Liberty Plaza, 165 Broadway, New York, NY 10006. Tel: +1 212 401 8700. www.nasdaqomx.com) on behalf of NASDAQ OMX Corporate Solutions clients. Source: Telenor, Snarøyveien 30, Fornebu 1331, Norge
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