Norwegian company Telenor raises annual outlook as Asian markets expand
STOCKHOLM / OSLO (Reuters) – Telenor raised its full-year revenue outlook on Tuesday, despite the Norwegian telecommunications operator announcing weaker-than-expected quarterly profit due to the negative impact of currency effects.
Adjusted profit before interest, taxes, depreciation and amortization (EBITDA) for April-June fell to NKr 12.35 billion ($ 1.38 billion), from NKr 13.18 billion a year earlier. Analysts in a survey compiled by the companies expected an average of Kroner 12.7 billion.
“Telenor returned to growth in the second quarter. Growth was driven by strong performance in the Nordic countries, combined with a growing subscriber base and increased data consumption in Asian markets, ”Chief Executive Officer Signe Brekke said in a statement.
Telenor said the negative currency effects, however, offset an underlying improvement by lowering its EBITDA by SEK 1.6 billion.
The company, which plans to sell its telecommunications assets in Myanmar, now forecasts organic growth in subscription and traffic revenue of 0-1% and organic EBITDA growth of 0-2%, up from to a previous forecast to maintain the 2020 level. Telenor kept its investment / sales ratio forecast unchanged at 15-16%.
Telenor, which serves 170 million customers in nine countries in Europe and Asia, wrote off the value of its Myanmar operations earlier this year following a military coup, and the company is now excluded from its reports.
Citing difficulties operating under the military junta, Telenor agreed in July to sell its activities in the Southeast Asian country to Lebanese investment firm M1 Group for $ 105 million.
Separately, the Oslo-listed company agreed to merge its mobile operations in Malaysia with local rival Axiata, forming a new market leader.
($ 1 = 8.9672 Norwegian crowns)
(Reporting by Supantha Mukherjee in Stockholm and Nora Buli in Oslo; Editing by Niklas Pollard and Sherry Jacob-Phillips)