Telenor Backs Guidance Despite Currency-Driven 3Q Net Profit Miss

By Dominic Chopping

Norwegian telecommunications provider Telenor ASA on Wednesday posted a third-quarter net profit that missed expectations amid hefty currency losses, though it maintained full-year guidance.

The company posted a net profit of 1.55 billion kroner ($149.1 million), compared with a net profit of NOK2.64 billion a year earlier and versus a company-compiled consensus of NOK2.57 billion. The decline was primarily caused by currency losses of NOK1.5 billion, mainly due to appreciation of the dollar against the Norwegian krone.

Earnings before interest, tax, depreciation and amortization--the company's preferred measure--rose to NOK12.89 billion from NOK12.7 billion, as revenue rose 3.7% to NOK28.43 billion, the company said.

A company-compiled consensus had expected Ebitda of NOK12.39 billion on revenue of NOK27.67 billion.

The mobile subscription base fell by 2.6 million in the third quarter, to 172.0 million, it said.

For 2022, Telenor said it still expects low-single-digit growth in service revenue, and while it sees a significant increase in energy prices weighing on Ebitda, a positive one-time effect in Pakistan this quarter supports maintaining the outlook of organic Ebitda around last year's level.

The full-year capital expenditure-to-sales ratio is expected to be in the previously indicated range of 16%-17%, it said.

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

(END) Dow Jones Newswires

October 26, 2022 02:16 ET (06:16 GMT)

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