Telenor continues to deliver on security offering and growth

Telenor has completed the first half of 2024 with solid results in both the Nordics and Asia. Strategic investments in technology and cybersecurity provide a solid foundation for further growth.

Service revenues in the second quarter ended at NOK 16.3 billion, corresponding to an organic increase of 4.5 per cent compared to the same period last year. EBITDA ended at NOK 8.8 billion, corresponding to organic growth of 3.8 per cent. Telenor generated a free cash flow of NOK 2.2 billion in the period.

Telenor Nordics and Telenor Asia delivered four and six per cent organic growth, respectively, in service revenues during the second quarter of the year; while organic EBITDA growth ended at four and two per cent, respectively. The Nordic transformation has reduced costs, supporting a flat OPEX development in Telenor Nordics for the quarter.

In total, Telenor Group delivered an EBITDA result of NOK 17.3 billion in the first half of the year, and a free cash flow before M&A of NOK 5.5 billion.

"Telenor is on track and continues to deliver on a strategy that works. We still have strong and profitable growth and solid cost control in the Nordic region – headed by Sweden and Finland in the last quarter. In Asia, we have seen a positive uplift in Thailand, partly because of tourism picking up again, as well as synergies," says Sigve Brekke, CEO of Telenor.

Stopped 1 billion fraud attempts
Consumers, businesses and the public sector are all increasingly exposed to digital crime. 1 of 5 Norwegian business leaders say they have experienced cyberattacks in the past year, according to a Norstat survey.

Telenor has stopped more than a billion digital crime attempts against its customers in Norway so far this year. Blocking fraudulent sites, phishing attempts and malware downloading are the most common incidents, in addition to many fraud attempts via phone calls and SMS. Telenor continues to monetize the more-for-more strategy, providing security products to its customers.

Telenor Cyberdefence was established in June to focus on security and to protect customers from digital criminals. The Telenor Amp subsidiary will develop advanced security products for the corporate market faster and even better suited to the market demand, contributing to securing Norwegian and Nordic businesses. In July, Telenor Cyberdefence acquired the Norwegian security company Combitech.

"We have taken a leading position in security and are showing that we mean business. We work every day to develop new and better products to take care of our customers. We now continue to attack this market with full force, which is necessary to protect our customers from well-organized, and increasingly sophisticated, criminal networks," says Brekke.

Technology key to success
Technology is key to combat digital crime and strengthen customer experience in all channels, while also driving operational efficiencies.

Earlier this year, Telenor launched a strategic partnership with Nvidia, as part of an ambitious plan for investments in artificial intelligence (AI). The strategic investment in the data center company Skygard was another important milestone in the first half of the year. In June, Telenor decided to expand its partnership with Amazon Web Services (AWS) to advance its sovereign cloud posture by using AWS’s sovereign-by-design technology and to enhance the digital transformation of Telenor.

"When I took over as CEO nine years ago, we talked about connectivity as a basic necessity for all, but also about finding new ways to create value in people’s digital lives - we are really doing that now. While I am satisfied with the solid results for the first half of the year, I am even more satisfied with the way we are reshaping and developing Telenor. We have built a strong foundation for the next 5-10 years to come," says CEO Sigve Brekke.

Financial outlook for 2024:

• Low-to-mid single-digit organic growth in Nordic service revenues (updated from low-single digit)
• Medium single-digit organic growth in both Nordic and Group EBITDA. 
• Nordic capex to sales ratio of around 17 per cent.
• Free cash flow of between NOK 9-10 billion before M&A and potential items related to prior years’ activities. 

Key figures for Telenor Group*

	Second quarter		First half year		Year
NOK in million	2024	2023	2024	2023	2023
Service revenues	16.320	15.832	32.093	30.655	62.540
Organic service revenue growth (%)	5 %	4 %	5 %	4 %	4 %
Total Revenues	19.936	20.224	39.393	39.411	80.452
Organic revenue growth (%)	1 %	3 %	1 %	4 %	3 %
Operating expenses	(6.880)	(6.777)	(13.584)	(13.218)	(26.832)
EBITDA before other income and other expenses	8.790	8.767	17.295	16.846	34.564
Organic EBITDA growth (%)	4 %	4 %	5 %	3 %	3 %
Operating profit	4.366	4.374	9.996	8.209	16.964
Net income from associates and joint ventures	194	(100)	7.489	(291)	(8.466)
Net income attributable to equity holders of Telenor ASA	2.540	821	14.100	18.967	13.734
Capex excl. lease	3.068	3.437	6.205	6.971	12.731
Free cash flow before M&A	2.203	(191)	5.491	242	9.490
Total Free cash flow	2.175	(518)	7.587	5.147	15.003
Leverage	2,3	2,4	2,3	2,4	2,2

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