Mobile revenues boost Telenor performance as it executes ‘strategic roadmap’

Sigve Brekke

Nordic telco Telenor has reported total revenues of $2.5 billion for Q4, 2022, up 1.9% year on year. Energy costs and copper decommissioning had a negative impact on the group’s performance but overall revenues were buoyed up by mobile. Overall revenues for 2022 were just shy of $10 billion – also up 1.9% year on year. For 2023, Telenor expects low to mid-single digit growth for both service revenues and earnings.

“The quarter represents significant progress on our new strategic roadmap towards 2025, said Sigve Brekke, president and CEO of Telenor Group. “Mobile service revenues in Telenor Nordics increased by 5%, demonstrating the growth potential in the region. We completed a merger in Malaysia establishing CelcomDigi as the clear market leader, we agreed on the sale of 30% of the Norwegian fibre business, and we completed the decommissioning of the copper network in Norway.”

The sale of the 30% stake in the Norwegian fibre business to a consortium led by KKR was unveiled on the eve of Telenor’s results announcement. Commenting on that deal, valued at around $1.1bn, Jannicke Hilland, EVP of Telenor Infrastructure, said it was “an important milestone in our new strategy of reshaping Telenor. We are showing the value in Telenor’s infrastructure while safeguarding investments in Norway’s fibre. This will benefit Norwegian consumers, who can receive modern and robust connectivity.”

Asia accounts for around half of Telenor’s group revenues, so it is no surprise that restructuring the company’s activities in Southeast Asia have been a key focus in the past year. In addition to the completion of the CelcomDigi merger in Malaysia, the company said good progress is being made towards completion of the merger between Telenor-controlled dtac and True in Thailand. The company said: “These transactions are the two largest telco mergers ever in Southeast Asia, and will establish market leader positions, along with opening growth opportunities and reducing risk. The synergies will strengthen cash flow and value creation over time.”

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