Telenor 2Q Adjusted Earnings Beat Views, Cautions on Lower Subscriptions This Year
16 Luglio 2020 - 8:21AM
Dow Jones News
By Dominic Chopping
Norwegian telecom provider Telenor ASA on Thursday reported
second-quarter adjusted Ebitda that beat estimates, but cautioned
that subscriptions this year will be lower than 2019.
Telenor posted a second-quarter adjusted earnings before
interest, tax, depreciation and amortization of 14.33 billion
Norwegian kroner ($1.54 billion), up from NOK12.03 billion a year
earlier. The adjusted Ebitda margin rose to 46.4% from 44.7%.
Net profit attributable to shareholders for the period rose to
NOK4.43 billion from NOK2.86 billion last year, as a NOK1.2 billion
provision was offset by asset sales and merger synergies.
Revenue rose 15% to NOK30.9 billion, driven by currency effects
of NOK2.8 billion as well as the consolidation of the acquired DNA
business.
Analysts polled by FactSet had expected adjusted Ebitda of
NOK13.82 billion and revenue of NOK31.17 billion.
"As expected, lockdowns have affected prepaid markets in Asia
and global roaming revenues negatively. Combined with a reduction
in new sales, this led to a decline in organic subscription and
traffic revenues of 4%, which was offset by an opex reduction of
12%," Chief Executive Sigve Brekke said.
"The financial results this quarter are positively impacted by
the strong performance of our operations in Norway and Finland,
while Bangladesh and Pakistan, as expected, remain the most
challenged prepaid markets."
The second-quarter mobile subscription base decreased by 3.2
million from the first quarter to 182.4 million.
For 2020, Telenor expects a low single-digit decline in
subscription and traffic revenues, stable organic Ebitda compared
with 2019 and around 13% capex to sales.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
July 16, 2020 02:06 ET (06:06 GMT)
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