Telenor ASA Swings to Profit in Q2

Norwegian telecommunications provider, Telenor ASA, announced on Thursday that it had achieved a net profit in the second quarter, surpassing market expectations for both earnings and revenue. The company reported a net profit of 821 million kroner ($81.8 million) for Q2, a significant improvement from the net loss of NOK1.11 billion recorded during the same period last year.

Telenor's preferred measure, Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) before other items, also witnessed growth. It rose from NOK8.46 billion to NOK8.77 billion in the second quarter. Additionally, the company's revenue climbed from NOK19.25 billion to NOK20.22 billion.

The company had compiled a consensus forecast which anticipated an EBITDA before other items of NOK8.48 billion on revenue of NOK19.75 billion, a forecast that Telenor exceeded.

Telenor attributed its success to the positive impact of its connectivity for customers and attractive security offerings. President and Chief Executive Sigve Brekke emphasized the company's commitment to continue focusing on modernization and efficiency initiatives that will eventually lead to improved cash-flow generation.

Looking ahead to 2023, Telenor remains confident in its projections for low to mid-single-digit growth in service revenue and EBITDA in the Nordics. The company plans to maintain a capital expenditure-to-sales ratio of approximately 17%.