Telenor says financial outlook ‘improved’ after India deal

By:
Alan Burkitt-Gray
Published on:

Sale of Telenor India to Bharti Airtel and reduction in Veon stake help profitability, says CEO

Telenor said its financial outlook has improved, partly thanks to its planned sale of its Indian operations to Bharti Airtel. The company’s first quarter results said that organic revenue growth will be in the range of 1%-2% and EBITDA margin will be around 37%.

“I’m pleased to see Telenor continuing to deliver organic EBITDA growth, while revenues were stable in the first quarter,” said CEO Sigve Brekke.

“As previously communicated, simplification and efficiency improvements are on top of our agenda. Our announcement to exit India, the continued sell-down in Veon [previously VimpelCom] and the launch of our cluster organisation are all examples of these efforts. Together with the company-wide initiatives to improve profitability, we believe that we are laying a solid foundation for Telenor's future.”

He identified highlights as “the strong data consumption in emerging Asia and the solid fibre momentum in Norway as well as Sweden”.

He said there was “encouraging customer reception” of new and improved mobile offers. “In Thailand and Malaysia, this supported double-digit postpaid growth, and we are actively working to mitigate the continued intense competition in the prepaid market.”