Solid year and fourth quarter for Telenor
Telenor ended last year strongly with solid top-line
growth and strong cash flow both in the fourth quarter and for the
full year.
"I am very pleased that we continue to deliver growth with new
and better products to our customers, at the same time as customer
surveys show that we have Norway's best and fastest network," says
Sigve Brekke, CEO of Telenor.
Service revenues for the full year 2023 ended up at NOK 62.5
billion, corresponding to an organic increase of 4.0 per cent
compared to last year. EBITDA ended at NOK 34.6 billion,
corresponding to organic growth of 2.8 per cent compared to the
year before. Total free cash flow amounted to NOK 15 billion.
Service revenues for the fourth quarter were NOK 16.1 billion,
up 4.9 per cent compared with the same period last year. EBITDA
ended at NOK 8.5 billion, corresponding to an organic increase of
3.9 per cent. Free cash flow for the quarter was NOK 4.9 billion
before M&A.
"The fourth quarter was yet another strong quarter for Telenor,"
continues Brekke.
Telenor Nordics and Telenor Asia delivered four
and seven per cent growth in service revenues, respectively, in the
final quarter of the year, while organic EBITDA growth ended at
five and four per cent.
Artificial intelligence accelerates the need for
increased security measures
During 2023, digitalization has reached new heights. At the same
time, the world is characterized by geopolitical tension, which
creates increased unrest and uncertainty for both individuals and
businesses. All services society depends on, such as water supply,
payment services, health and emergency services and electricity
supply, are to a large extent digital.
"Increased digitalisation leads to greater vulnerability, which
is why investments in digital security are just as important as
investments in artificial intelligence. Norwegian businesses and
public enterprises are exposed to more and more serious
cyber-attacks", says Brekke.
In the fourth quarter alone, Telenor stopped around 300 million
attempts at digital crime against Norwegian customers, which is an
increase of around 30 percent compared to the previous quarter.
With artificial intelligence on the rise, we are facing a new
era. Criminal groups have gained access to a new toolbox that
creates increased unpredictability.
"Whether you're an individual or a business owner, we are all
targets. Therefore, we must adapt, be vigilant and take action to
protect our digital lives and values", says Brekke.
In 2023, Telenor stopped 280 million fraud calls globally, out
of which 31 million in Norway and 63 million in the Nordic
region.
Extreme weather puts important infrastructure to the
test
2023 set quite a few weather records and is internationally
considered the warmest year ever recorded.
"I'm proud of how our grid coped with the extreme weather last
year. This shows that our long-term commitment to upgrading the
grid has the desired effect. Every year, we invest around NOK six
billion in development and upgrades in Norway, to provide our
customers with the best and safest network", says Brekke.
Telenor's goal is to halve greenhouse gas emissions by 2030 and
zero emissions by 2045. Telenor is also using its influence
to impact its suppliers to set science-based climate targets. So
far, more than half of all the company's purchases are from
suppliers that have set science-based climate targets. By 2025,
around 70 per cent of Telenor's purchases will be made from
suppliers that have set science-based climate targets.
"Extreme weather makes it even clearer that society must prepare
for a future where nature sets the agenda. Telenor must take our
share of the responsibility here, including reducing our own
emissions," says Brekke.
Delivering Norway's fastest and best grid
"Not only was our network once again voted Norway's fastest, we
also received the award for Norway's best network by Ookla. This
makes us very proud," says Brekke.
For the sixth consecutive year, Telenor's network was named
Norway's fastest by Ookla Speedtest. Telenor’s Finnish
company DNA won the Finnish Quality Award and ranked highest in
customer satisfaction among Finnish mobile operators, according to
EPSI Rating.
Financial outlook for 2024:• Low
single-digit organic growth in Nordic service revenues.• Medium
single-digit organic growth in both Nordic and Group EBITDA.•
Nordic capex to sales ratio of around 17 per cent. • Free cash flow
of between NOK 9-10 billion before M&A and potential items
related to prior years’ activities.
Key figures for Telenor Group
|
|
Fourth quarter |
Year |
|
NOK in million |
2023 |
2022 |
2023 |
2022 |
|
Service revenues |
16 073 |
14 984 |
62 540 |
59 760 |
|
Organic service revenue growth (%) |
5% |
-2% |
4% |
3% |
|
Total Revenues |
20 934 |
19 667 |
80 452 |
76 877 |
|
Organic revenue growth (%) |
4% |
3% |
3% |
4% |
|
Operating expenses |
(7 282) |
(6 755) |
(26 832) |
(25 229) |
|
EBITDA before other income and other expenses |
8 467 |
8 040 |
34 564 |
33 830 |
|
Organic EBITDA growth (%) |
4% |
0% |
3% |
1% |
|
Operating profit |
3 769 |
3 327 |
16 964 |
15 143 |
|
Net income from associated companies and joint ventures |
(8,198) |
(37) |
(8,466) |
(301) |
|
Net income attributable to equity holders of Telenor ASA |
(7 683) |
37 906 |
13 734 |
44 913 |
|
Capex excl. lease |
3 094 |
4 020 |
12 731 |
13 560 |
|
Free cash flow before M&A |
4 919 |
2 546 |
9 490 |
9 865 |
|
Total Free cash flow |
5 525 |
948 |
15 003 |
10 604 |
|
Leverage |
2.2 |
2.2 |
2.2 |
2.2 |
Media contact: Ingibjörg Meyer-Myklestad +47 90
60 55 05
Investor contact: Frank Maaø +47 91 67 40
45
Telenor ASA (TG:TEQ)
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