Telenor’s Q3 earnings were boosted by a one-off gain in Pakistan, which helped it to maintain its full-year outlook, although CEO and president Sigve Brekke flagged high energy prices in the Nordics as an ongoing headwind.
Revenue for the period grew year-on-year to NOK28.4 billion ($2.7 billion) from NOK27.4 billion, with service revenue up 2.5 per cent to NOK21.9 billion on the back of strength in mobile in the Nordic region.
Reported EBITDA reached NOK13.1 billion, an increase of 1.6 per cent. The company said increase in energy costs of NOK400 million impacted EBITDA, but this was “more than offset by the reversal of a tax provision in Pakistan of NOK600 million” following a favourable high court decision.
Net income however did not fair well, dropping from NOK2.6 billion to NOK1.5 billion, impacted by currency losses mainly due to the strengthening of the dollar against the Norwegian Krone.
Other highlights included increased data use, which was a main driver from Grameenphone’s 7 per cent service revenue increase, while the company was also buoyed by clearance for its planned merger of Digi and Celcom in Malaysia.
Telenor said it maintained an expectation of low single digit growth in service revenues, and although a “significant increase in energy prices is weighing on EBITDA”, a positive one-time gain in Pakistan supported it to maintaining organic EBITDA levels of 2021.
Telenor last month issued a profit warning for 2022 last month, citing the energy cost crisis as a major factor.
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