Norwegian telecommunications provider, Telenor, has exceeded expectations with its Q3 net profit, driven by solid growth in the Nordics and synergies in Asia.
Strong Financial Performance
Telenor announced a net profit of 2.45 billion Norwegian kroner ($219.3 billion) for the third quarter, compared to NOK1.55 billion in the previous year. FactSet analysts had forecasted a net profit of NOK2.35 billion, making Telenor’s result even more impressive.
While adjusted earnings before interest, tax, depreciation, and amortization (Ebitda) slightly decreased from NOK9.29 billion to NOK9.25 billion, Telenor reported a 3% increase in revenue to NOK20.11 billion.
The company-compiled consensus predicted adjusted Ebitda of NOK9.11 billion on revenue of NOK20.24 billion.
Positive Outlook for the Future
CEO Sigve Brekke expressed confidence in Telenor’s strategic direction, saying, “Just over a year has passed since we laid out our strategy for a reshaped Telenor on our Capital Markets Day, and we are on track to deliver as promised.”
Telenor expects organic service revenue growth above 3% and organic Ebitda growth of 3%-4% in the Nordics by 2023. Previously, the company had predicted low to mid-single-digit growth in both service revenue and Ebitda in the Nordics.
The Nordics’ capital expenditure-to-sales ratio is projected to remain at approximately 17%.
Telenor’s strong Q3 performance reflects the company’s successful growth initiatives in the Nordics and Asia. With optimistic future projections, Telenor appears well-positioned for continued success in the telecommunications industry.