The following is a summary of the Telenor ASA (TELNY) Q2 2024 Earnings Call Transcript:
Financial Performance:
Telenor ASA reported strong financial results with group service revenues growing by 4.5% and EBITDA by almost 4% in Q2.
Group CapEx on sales was 15%, while reporting NOK2.2 billion in free cash flow, summing up to NOK5.5 billion year-to-date before M&A.
In the Nordics, revenue growth was primarily driven by consumer mobile and ARPU growth from more-for-more price increase strategies, contributing to an EBITDA growth of 4%.
Asia continues to show progress on growth and synergy realization, particularly in True and CelcomDigi, despite headwinds from energy costs, particularly in Pakistan.
Business Progress:
Telenor is progressing well with its Nordic transformation, targeting operational efficiencies and customer benefits across Network and IT, Shared Services, Commercial area, and Working Capital.
Significant progress includes shutting down 98 out of 200 targeted legacy systems, establishing a Shared Services hub in Portugal, and capturing about NOK100 million in OpEx savings so far this year.
The company launched a new security offering for business customers in Norway and set up a new cybersecurity company, Amp, to enhance service offerings.
Opportunities:
Strong cash flows from Grameenphone and CelcomDigi in Asia, with True in Thailand identified as a key driver for future growth and synergy benefits.
Continued focus on digital and cybersecurity services to leverage growing security demands and enhance market position across the Nordics.
Plans for further financial improvements and potential dividend payouts from Asian operations in 2025.
Risks:
Regulatory uncertainties and competitive challenges in the telecom sector, with specific concerns regarding the dual 5G network structure in Malaysia and revenue growth challenges.
Economic conditions, especially inflation and energy cost increases, particularly affecting operations in Asia.
More details: TELENOR ASA ADR EACH REPR 1 ORD NOK6 SPON IR
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