Oslo – Fornebu ( COMPANY PRESS RELEASE )
“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
KEY FIGURES TELENOR GROUP
|
NOK (in millions) |
Q2 2017 |
Q2 2016 |
First half year 2017 |
First half year 2016 |
Year 2016 |
|
Revenues |
31 470 |
30 926 |
61 927 |
62 420 |
125 395 |
|
Organic revenue growth (%) |
2.1 |
0.0 |
1.2 |
0.7 |
0.8 |
|
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 (%) |
40.4 |
36.8 |
39.0 |
36.9 |
36.7 |
|
Net income attributable to equity holders of Telenor ASA |
(167) |
1 111 |
4 001 |
5 367 |
2 832 |
|
Capex excl. licences and spectrum/Revenues (%) |
14.0 |
16.3 |
14.4 |
16.3 |
17.4 |
|
Capex/Revenues (%) |
17.9 |
27.2 |
16.4 |
21.8 |
20.2 |
|
Free cash flow |
9 946 |
497 |
12 113 |
(272) |
10 300 |
|
Mobile subscriptions – Change in quarter/Total (mill.) |
1.9 |
2.7 |
174 |
167 |
170 |
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.
SECOND QUARTER 2017 SUMMARY
-
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.
FINANCIAL OUTLOOK 2017
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%.