TELNY Telenor ASA (QX)

By Dominic Chopping

Norwegian telecom provider Telenor ASA on Tuesday reported fourth-quarter adjusted earnings that beat estimates, as lower subscription and traffic revenues were offset by cost cuts.

Telenor posted fourth-quarter adjusted earnings before interest, tax, depreciation and amortization of 16.49 billion Norwegian kroner ($1.92 billion), up from NOK13.18 billion a year earlier and beating the NOK13.92 billion expected in a FactSet poll.

Net profit attributable to shareholders for the period rose to NOK7.69 billion, from NOK1.77 billion last year, boosted by a NOK2.1 billion disposal and a NOK1.2 billion office building sale and leaseback.

Revenue fell 2.5% to NOK30.95 billion.

Analysts polled by FactSet had expected net profit of NOK5.02 billion and revenue of NOK31.27 billion.

Telenor proposed a dividend of NOK9.

The company said its operations in Asia and its roaming revenues remained impacted by the pandemic. The sharp decline in international travel has reduced roaming volumes dramatically and will likely remain at a low level in the first half of 2021, it said.

Lockdowns and border closures will continue into 2021 and Telenor expects a gradual recovery in Asian markets during the second half of the year.

In the Nordics, roaming is expected to remain the most impacted by the pandemic, it added.

The fourth-quarter mobile subscription base grew by 1.5 million compared with the third quarter, to 182 million.

For 2021, Telenor expects organic subscription and traffic revenues and Ebitda to remain around 2020 levels, with a capex to sales ratio of 15%-16%.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

February 02, 2021 02:22 ET (07:22 GMT)

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