Strong year for Telenor; continued transformation top priority in 2018

In 2017, Telenor delivered a solid set of results due to strong execution from across the company and continued follow-through on efficiency measures and our strategy. We met our financial targets and reported strong financial results for the past year, marked by a 1% organic increase in revenues and total net cost reductions of NOK 1.6 billion, leading to increased profitability and cash flow of NOK 25 billion.

During the fourth quarter, we saw continued subscription and traffic revenue growth and solid EBITDA uptake, on an organic basis. We achieved cost savings of NOK 0.6 billion during the final three months of the year, reported an EBITDA margin of 37% and added two million new mobile customers.

We enter 2018 with clear priorities to deliver on our digital transformation agenda, to continue to seek efficiency gains and revenue growth, while simplifying our portfolio and way of work across the company. Change starts with people, and in order to succeed with our transformation, we will continue to invest in our teams. We seek to personalise our customers' experience and improve satisfaction based on their needs and preferences.

Telenor aims to create value by becoming even more efficient in how we operate, how we deliver our services and how customers experience us through the digitalisation of IT and technology and our customer journeys. We are proud to connect our 178 million customers to what matters most to them. We truly believe that connected societies are empowered societies, said Telenor Group CEO Sigve Brekke.

NOK (in millions) Q4 2017 Q4 2016 FY 2017 FY 2016

Revenues 32 093 31 727 124 756 125 395

Organic revenue growth (%) (0.5) 0.6 0.7 0.8

Organic subscription and traffic revenue growth (%) 2.6 0.8 2.2 1.9

EBITDA before other income and other expenses 11 835 10 649 48 992 45 966

EBITDA before other income and other expenses/Revenues (%) 36.9 33.6 39.3 36.7

Net income attributable to equity holders of Telenor ASA 2 226 2 286 11 983 2 832

Capex excl. licences and spectrum/Revenues (%) 17.1 21.3 14.6 17.4

Capex/Revenues (%) 19.2 21.3 17.1 20.2

Free cash flow 3 327 1 509 24 867 10 300

Mobile subscriptions Change in quarter/Total (mill.) 2.0 4.0 178 170

With effect from the first quarter 2017, Telenor India is treated as an asset held for sale and discontinued operations in Telenor's financial reporting.

Fourth quarter 2017 summary

Total reported revenues increased by 1% to NOK 32.1 billion. On an organic basis, revenues dropped 0.5%, while subscription and traffic revenues rose by 3%, positively impacted by a negative one-time item in Sweden last year.

Currency adjusted opex decreased by NOK 0.6 billion, or 5%.

EBITDA before other items was NOK 11.8 billion, corresponding to an EBITDA margin of 37%, an increase of 3 percentage points from last year.

Net income attributable to equity holders of Telenor ASA was NOK 2.2 billion, or NOK 1.49 earnings per share. Adjusted for impairment in Tapad of NOK 1.7 billion and reversal of impairment of NOK 1.2 billion in Denmark, net income was NOK 2.6 billion.

Capex excluding spectrum and licences was NOK 5.5 billion, resulting in a capex to sales ratio of 17%.

Free cash flow for the quarter was NOK 3.3 billion.

Shareholder remuneration

Based on the performance during the year, the Board of Directors proposes a dividend of NOK 8.10 for 2017, to be declared by the Annual General Meeting (AGM) on 2 May 2018. The dividend shall be split into two tranches of NOK 4.20 and NOK 3.90 per share, to be paid in May and November 2018, respectively.

The 2017 buyback programme is expected to be completed by the end of February 2018. The company plans to ask the AGM for a new buyback mandate to secure flexibility for additional shareholder remuneration.

Outlook

For 2018, we expect an organic subscription and traffic revenue growth of 1-2%, an organic EBITDA growth of 1-3% and capex excluding licences and spectrum of NOK 18-19 billion.

Media Contact

Meera Bhatia, mobile ( 47) 46 84 49 59, meera.bhatia@telenor.com

Investor Relations Contacts

Marianne Moe, mobile: ( 47) 91 61 76 31, marianne.moe@telenor.com

Helge ien, mobile: ( 47) 91 31 92 42, helge.oien@telenor.com

Press and analyst presentation

In connection with the publication of the financial results, a press and analyst conference will be held on Wednesday 31 January at 09:00 hrs Norwegian time/CET. The presentation, which will also be broadcast live via webcast, will be held in Auditorium Voice, Telenor Expo Visitor Centre at Fornebu, near Oslo. CEO Sigve Brekke and CFO J rgen C. Arentz Rostrup will present the results. The presentation will be held in English.

You may also call in and listen to the presentation over the phone. This service allows you to ask questions during the Q&A session at the end of the presentation. To participate in the conference call, please register before the conference starts by calling:

47 2100 2610 (Norway)

46 (0) 8 5033 6574 (Sweden)

44 (0) 330 336 9105 (UK)

1 323 794 23 (US)

Please state the confirmation code: 2705989

Material

The quarterly report and the presentation are available here. https://www.telenor.com/investors/reports/2018/telenor-groups-results-for-the-4th-quarter-2017/

LINK:	https://www.telenor.com/media/press-release/strong-year-for-telenor-co...
	See more stories from telenor

Most recent headlines