Telenor Backs Guidance Despite Dip in 3Q Ebitda

By Dominic Chopping

Norwegian telecom provider Telenor ASA (TEL.OS) backed its full-year guidance despite posting a slight drop in third-quarter earnings before interest, tax, depreciation and amortization.

Telenor posted a third-quarter adjusted Ebitda of NOK12.09 billion, down from NOK12.41 billion in the same period a year earlier. It swung to a net loss for the period of NOK436 million compared with profit of NOK5.88 billion, after booking a large currency loss due to a weakening of the Norwegian Krone and the recognition of a previously announced income tax expense related to a reassessment. Revenue rose to NOK29.53 billion from NOK27.57 billion.

Analysts polled by FactSet had expected adjusted Ebitda of NOK12.24 billion and revenue of NOK29.65 billion.

The company still expects subscription and traffic revenue at around the 2018 level and a low-single-digit decline in earnings before interest, tax, depreciation and amortization.

Capital expenditure excluding licenses and spectrum and its recent acquisition of DNA, is still expected at between 16 billion and 17 billion Norwegian kroner ($1.75 billion-$1.86 billion).

Organic subscription and traffic revenues decreased by 0.6%, as the decline in Pakistan following the re-introduction of telco specific taxes outweighed positive developments in other markets.

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

(END) Dow Jones Newswires

October 23, 2019 04:28 ET (08:28 GMT)

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