The following is a summary of the Telenor ASA (TELNY) Q1 2024 Earnings Call Transcript:
Financial Performance:
Telenor ASA reported a 6% growth in service revenue and a 7% growth in EBITDA in Q1 2024.
It generated a total free cash flow of NOK5.4 billion in the same quarter.
Positive financial growth was attributed to revenue growth, cost discipline in the Nordic region, and cash flow focus in Asia.The strong Q1 results in the Nordic operation were better than expected.
The company is on track to meet its full-year and midterm financial targets.
Business Progress:
Telenor showed strong growth in the Nordic region as all business units contributed to revenue and EBITDA.
The company has outlined a new cloud-native technology transformation program and formed a joint venture, Skygard, to launch new data centers by H1 2025.
The Asian operations are focusing on synergy realization and cash repatriation, aligning with the target of generating NOK5 billion in free cash flow from Asia in 2025.
A partnership has been confirmed with NVIDIA to enhance Telenor's data centers, aiding in Telenor Nordics' transformation.
The company plans to concentrate its efforts on cost management, exploring profitable ventures, and growing operational leverage in response to customer churn due to price increases.
There's anticipation of a positive regulatory change allowing more access to the fixed market and contributing to potential cost savings.
It is planning a more wholesale-oriented business approach in response to changing fiber conditions.
Telenor foresees deregulation positively impacting revenue generated on its mobile towers and looks forward to the lifting of national roaming regulations.
Notwithstanding the divestment of Telenor Pakistan, the company aims to keep its cash flow targets consistent, with the ambition to resume dividends by 2025.
More details: TELENOR ASA ADR EACH REPR 1 ORD NOK6 SPON IR
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