Telenor Enters the Year with Strong Momentum

Telenor Sets Strong Pace in Q1 with Growth in Nordics and Asia.Telenor’s first-quarter performance showcased robust momentum, with notable top-line expansion in both the Nordics and Asia.

Sigve Brekke, CEO of Telenor, remarks, “The first quarter marked another solid period for Telenor. Our ongoing focus on enhancing security services to shield customers from digital threats remains steadfast, reflecting its significance in safeguarding our clientele.”

In the first quarter, service revenues reached NOK 15.8 billion, denoting a 5.6 percent organic upsurge compared to the corresponding period last year. EBITDA stood at NOK 8.5 billion, demonstrating a 6.9 percent organic growth, while free cash flow amounted to NOK 3.3 billion pre-M&A activities.

Telenor Nordics and Telenor Asia achieved service revenue growth of five and six percent respectively during the quarter, with organic EBITDA growth registering at eight and five percent.

Rising Cyber Security Threats

Telenor observed a surge in cyber security threats during the first quarter, intercepting over 500 million attempts at digital malfeasance against Norwegian customers.

Brekke comments, “The sheer magnitude of these attacks underscores the gravity of this societal issue. Perpetrated by well-organized criminal factions, advancements in technology facilitate the proliferation of diverse attack vectors.”

Comparing to the preceding quarter, these figures marked an escalation of almost 70 percent, correlating with a heightened demand for security solutions among customers.

“We remain committed to fortifying our customers against digital menaces through continual innovation,” adds Brekke.

AI Advancements

Artificial intelligence (AI) occupies a prominent position in public discourse and business strategy alike.

Brekke notes, “AI permeates various facets of our operations, from network optimization and energy management to customer service and beyond. Yet, to stay ahead, proactive adoption is imperative given the rapid pace of AI evolution.”

In this quarter, Telenor forged a strategic alliance with NVIDIA, a leading force in AI technology, aiming to catalyze AI integration across the Nordic region. This collaboration entails embedding AI across Telenor’s operations, augmenting workplace efficiency, value chain optimization, and enriching customer experiences.

World’s Most Extensive Mobile Network

February saw the inauguration of the world’s southernmost base station in Antarctica, marking a historic milestone for Telenor. This initiative extends coverage to the Norwegian research station Troll, enhancing connectivity in the vicinity.

Brekke highlights, “Operated by Telenor Svalbard, the world’s southernmost commercial station complements our existing infrastructure, which spans from the northernmost base station in Ny-Ålesund to its southern counterpart.”

Financial Outlook for 2024

Telenor anticipates low single-digit organic growth in Nordic service revenues, coupled with medium single-digit organic growth in both Nordic and Group EBITDA. The Nordic capex to sales ratio is projected at around 17 percent, with free cash flow expected to range between NOK 9-10 billion pre-M&A activities and potential group initiatives.

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