Telenor Swung to 1Q Profit, Backs Fiscal Year 2022 Guidance Despite Headwinds -- Update
May 03 2022 - 3:22AM
Dow Jones News
By Dominic Chopping
Norwegian telecommunications provider Telenor ASA on Tuesday
cautioned that high costs and competition in Asia will remain into
the second quarter, though full-year earnings are still seen flat
to slightly higher.
The company posted a first-quarter net profit of 6.57 billion
Norwegian kroner ($695.8 million), compared with a net loss of
NOK3.89 billion a year earlier. Earnings last year were weighed by
the NOK6.5 billion impairment of its Myanmar business, and this
year were boosted by the NOK1.7 billion disposal of Swedish-noncore
assets and a NOK2.5 billion reversal of tax.
Earnings before interest, tax, depreciation and
amortization--the company's preferred measure--rose to NOK13.21
billion from NOK12.06 billion, as revenue fell 1.8% to NOK27.72
billion, the company said.
Analysts polled by FactSet had expected Ebitda of NOK12.09
billion and revenue of NOK27.11 billion.
Telenor said the first quarter was weighed on by the
transformation of its fixed-line business in Norway, high energy
prices and tough competition in Thailand, as well as high project
costs. These factors are expected to continue into the next
quarter, it said.
"Actions taken are expected to mitigate negative elements,
particularly in the second half of the year. We expect a gradual
recovery of the Thai market but acknowledge the increased global
uncertainty," the company said.
The mobile subscription base grew by a further 800,000 in the
first quarter, to 173.0 million.
For 2022 and excluding its Digi unit in Malaysia, Telenor said
it still expects low-single-digit growth in service revenue, as
well as earnings before interest, tax, depreciation and
amortization around the 2021 level or slightly higher, and a
capex-to-sales ratio of 16% to 17%.
Telenor expects Ebitda growth to lag revenue development for a
few quarters.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
May 03, 2022 03:07 ET (07:07 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
Telenor ASA (QX) (USOTC:TELNY)
Historical Stock Chart
From Aug 2024 to Sep 2024
Telenor ASA (QX) (USOTC:TELNY)
Historical Stock Chart
From Sep 2023 to Sep 2024