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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