Q2 2024 Telenor ASA Earnings Call Transcript
Key Points
- Telenor ASA (TELNF) reported a 4.5% growth in group service revenues and nearly 4% growth in EBITDA for the second quarter.
- The Nordic transformation is progressing well, with flat OpEx and expectations of a slight reduction by the end of the year.
- In Asia, True in Thailand is showing strong growth and synergy realization, with expectations of dividend payments in 2025.
- Telenor ASA (TELNF) has launched a new cybersecurity offering in Norway, strengthening its market position in digital security.
- The company has a strong balance sheet with a net leverage ratio of 2.3x, maintaining financial stability.
- Operating expenses increased by 3.7% year-over-year, primarily due to rising energy costs in Asia, particularly in Pakistan.
- Inflation remains a challenge in Asian markets, impacting EBITDA growth in regions like Pakistan and Bangladesh.
- The Amp business unit continues to face gross margin headwinds and growth costs, causing a drag on group-level growth.
- There is uncertainty around the exact timing of the Pakistan divestment, which could extend into 2025.
- Despite strong performance, there is increasing competition in the large enterprise and public segments in Scandinavia, leading to some ARPU erosion.
Good morning, and welcome to Telenor's Second Quarter Results Call. My name is Frank Maao, Head of Investor Relations. And with me today, I have Sigve Brekke, our CEO; and also acting CFO, Kasper Kaarbo. As usual, within the presentation material today, all the references we make to growth rates are made on an organic like-for-like currency basis.
So today, Sigve will give an update on how the Nordic transformation process is going and also give a few comments on progress in Asia. And after this, Kasper will go through our financials and outlook. Then Sigve will sum it all up and open up for questions.
Now on an especially hectic earnings day with overlapping calls, we'll try to keep the session today a bit shorter and make sure everyone has a chance to ask their questions. So given this, we would really appreciate if you could limit yourself to one question today, please, restraining yourself through a clarification on the follow-ups.
So Sigve, the floor is yours.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
