Telenor Lifts Dividend After 4Q Earnings Beat Forecasts

By Dominic Chopping

Norwegian telecommunications provider Telenor ASA on Thursday posted a forecast-beating fourth-quarter net profit and raised its dividend as improved mobile growth in the Nordics boosted service revenue and earnings, despite increased energy costs.

The company posted a net profit of 37.91 billion kroner ($3.82 billion), compared with a net profit of NOK587 million a year earlier and versus a company-compiled median consensus of NOK31.32 billion. The company registered a gain of NOK32.9 billion in the quarter after closing the merger between its Malaysian mobile operator Digi and Axiata Group Bhd's Celcom.

Adjusted earnings before interest, tax, depreciation and amortization--the company's preferred measure--was flat at NOK10.15 billion, as revenue rose 2.2% to NOK25.4 billion, Telenor said.

A company-compiled consensus had expected adjusted Ebitda of NOK9.85 billion on revenue of NOK25.64 billion.

The mobile subscription base fell by 3.4 million in the fourth quarter, to 158.3 million, it said.

For 2023, Telenor expects low to mid-single-digit growth in both service revenue and Ebitda in the Nordics, with a capital expenditure-to-sales ratio of around 17%.

Overall, Telenor said it maintains its midterm ambitions.

For 2022, the company proposed a dividend of NOK9.40 a share, up from NOK9.30.

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

(END) Dow Jones Newswires

February 02, 2023 01:52 ET (06:52 GMT)

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