Telenor Raises Full-Year Outlook

By Jesus Calero

(Reuters) – Norwegian telecom operator Telenor raised its full-year outlook on Wednesday after reporting third-quarter earnings slightly ahead of market expectations.

The company stated that its earnings before interest, tax, depreciation, and amortization (EBITDA) before other items fell to 9.21 billion crowns ($840.08 million) in the July to September quarter, down from 9.25 billion a year earlier. This was slightly above analysts' expectations in a consensus poll provided by the company.

Telenor now expects 3%-4% organic growth in Nordic service revenues, an increase from low-to-mid single digits earlier. The company predicts approximately 6% Nordic EBITDA growth, up from mid-single digit earlier forecasts, and free cash flow of NOK 9.5-10 billion, compared to the previous NOK 9-10 billion.

The outlook reflects confidence in Nordic growth driven by upselling strategies and enhanced services, despite macroeconomic setbacks in Bangladesh. Telenor CEO Sigve Brekke noted that following social unrest that led to the toppling of the Bangladeshi government, the company was forced to close its mobile data network. Although the network reopened after the new government took over, recovery in Bangladesh will take time, as key economic sectors remain partially closed.

Telenor's operations in Bangladesh, under the brand Grameenphone, significantly contribute to the company's total revenues, accounting for nearly 18% in the third quarter.

Meanwhile, Telenor's Nordics business area experienced strong organic service revenue growth, driven by a “more-for-more” pricing strategy. This approach allowed the company to enhance service offerings while justifying higher prices. Telenor also added net mobile subscribers across the Nordic region, contributing to revenue growth despite competitive pressures, particularly in large and medium enterprise segments.

($1 = 10.9469 Norwegian crowns)

(By Jesus Calero in Gdansk; Editing by Mrigank Dhaniwala)