Telenor 3Q Beat Estimates as Cost Cuts Offset Lower Subscription, Traffic

    By Dominic Chopping

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

Telenor posted third-quarter adjusted earnings before interest, tax, depreciation and amortization of 14.57 billion Norwegian kroner ($1.57 billion), up from NOK13.13 billion a year earlier. The adjusted Ebitda margin rose to 48.6% from 46.2%.

Net profit attributable to shareholders for the period rose to NOK4.53 billion, from a loss of NOK679 million last year.

Revenue rose 5.6% to NOK30.01 billion.

Analysts polled by FactSet had expected adjusted Ebitda of NOK13.96 billion and revenue of NOK30.36 billion.

Telenor 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 they will likely remain at a very low level at least throughout 2020 and into 2021, it added.

The third-quarter mobile subscription base fell by 2.1 million compared with the second quarter, to 180.3 million.

For 2020, Telenor still expects a low single-digit percentage decline in subscription and traffic revenues and around 13% capex to sales, but it now sees low single-digit organic Ebitda growth, from stable organic Ebitda previously.

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

(END) Dow Jones Newswires

October 21, 2020 02:19 ET (06:19 GMT)

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