Telenor Group's Strong Performance Signals Future Growth
Telenor Group has recently reported impressive results in its latest financial quarter, showcasing a cash flow that exceeds previous expectations. The company's strategic focus remains steadfast, aiming for continued growth and transformation alongside a reduction in capital expenditure anticipated for the coming years. Additionally, the Board of Directors has proposed a dividend of NOK 9.60 per share for the upcoming financial year.
Fourth Quarter and Annual Highlights
In the fourth quarter, Telenor showcased several key highlights:
- Nordic mobile service revenues increased by 4.6 percent over the full year, contributing to total service revenues that reached NOK 44.7 billion — a 3.6 percent growth.
- The company's EBITDA before other items stood at NOK 35.0 billion for the full year.
- A remarkable free cash flow before mergers and acquisitions (M&A) totaled NOK 11.4 billion, out of which NOK 3.1 billion was generated in the fourth quarter alone.
- Telenor successfully thwarted 2.2 billion attempts of digital crime aimed at its customers in Norway throughout the year.
In terms of organic growth, Telenor recorded an increase in service revenues by 1.1 percent and an organic EBITDA growth of 2.0 percent in the final quarter. Overall, the EBITDA before other items was reported at NOK 8.5 billion.
Leadership Insights and Market Position
CEO Benedicte Schilbred Fasmer expressed her satisfaction with the company's achievements, emphasizing the importance of understanding Telenor's dynamics and leveraging collective knowledge as they steer towards future objectives. The positive results in 2024 reflect the commitment and hard work of the team.
Nordic and Bangladesh Performance
Telenor’s performance in the Nordics has been commendable with a 2.3 percent rise in organic service revenues reported in the last quarter. Furthermore, organic EBITDA growth was recorded at 6.0 percent, primarily due to efficiency initiatives implemented across the region.
Telenor has firmly established itself in the Nordics, actively enhancing its market presence. The company's commitment to delivering exceptional value to its customers is evident, as their revenues outpaced general inflation levels. Notably, Finland emerged as a growth leader within the quarter, although every Nordic market displayed commendable performance.
Challenges in Bangladesh
Conversely, Telenor's operations in Bangladesh have faced hurdles, particularly following significant unrest earlier in the year. Despite these challenges, the team's resilience has been impressive. Telenor Pakistan, on the other hand, has been noted for its robust performance amid tough macroeconomic conditions.
Robust Cash Flow and Financial Goals
The financial health of Telenor is underscored by a free cash flow of NOK 3.1 billion recorded in the fourth quarter alone. Over the full year, free cash flow reached NOK 11.4 billion, significantly surpassing expectations. The contributions from M&A activities, valued at NOK 1.9 billion, brought the total free cash flow, including M&A, to NOK 13.3 billion. This robust cash flow is largely attributed to growth in EBITDA within the Nordics coupled with efficient management of working capital.
Telenor aims for a free cash flow approximation of NOK 13 billion moving forward, ensuring alignment with its dividend policy that emphasizes nominal growth. To that end, the Board of Directors has advised a total dividend of NOK 9.60 per share for the upcoming annual meeting, an increase from NOK 9.50 distributed for the prior year.
Commitment to Digital Security
Telenor remains vigilant in its efforts to combat digital crime. In just the fourth quarter, the company hindered 716 million digital crime attempts. Throughout the entire year of operations, Telenor successfully prevented over 2.2 billion such attempts targeting its Norwegian customer base.
Looking Ahead: Financial Projections for 2025
Telenor's projections for 2025 are promising, with expectations for low single-digit organic growth in Nordic service revenues. The company anticipates mid-single-digit organic growth in EBITDA across the Nordic region. For capital expenditures excluding leases, Telenor expects about 14% of revenues to be allocated accordingly.
- The Group projects low to mid-single-digit organic growth in EBITDA.
- A continued free cash flow of around NOK 13 billion is expected before any M&A activities and potential adjustments related to previous years’ operations.
Contact Information
For any inquiries, please reach out to:
Thomas Midteide, SVP Communications, mobile +47 96 23 20 17
Frank Maaø, SVP Capital Markets and Investor Relations, mobile +47 91 67 40 45
Frequently Asked Questions
What were Telenor's overall results for the fourth quarter?
Telenor reported a solid performance with 1.1 percent growth in organic service revenues and NOK 8.5 billion in EBITDA for the fourth quarter.
How does Telenor's dividend for 2024 compare to 2023?
The Board proposed a dividend of NOK 9.60 per share for 2024, an increase from NOK 9.50 for the previous year.
What challenges did Telenor face in Bangladesh?
Bangladesh's economic recovery was slow following unrest, presenting various operational challenges for Telenor's team.
What factors contributed to Telenor's strong cash flow?
A substantial growth in EBITDA within the Nordics and effective working capital management were the main contributors to Telenor's robust cash flow.
What are Telenor's revenue growth expectations for 2025?
Telenor expects low single-digit organic growth in Nordic service revenues and mid-single-digit growth in EBITDA for 2025.
