Operational execution in line with plan

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In the second quarter we continue to execute on the strategy we laid out last year, seeing firm operational momentum. Quality connectivity for customers and attractive security offerings continue to drive growth , says Sigve Brekke, President and CEO of Telenor Group.

We maintain our focus on progress in modernisation and efficiency initiatives that will drive improved cash flow generation over time , Brekke adds.

Service revenues were NOK 15.8 billion, which is an increase of NOK 0.8 billion or 5 percent compared to the same period last year. On an organic basis, service revenues increased by 4 percent.

EBITDA before other items was NOK 8.8 billion and increased by 4 percent, both on reported and organic basis.

Net income attributable to equity holders of Telenor ASA was NOK 0.8 billion for the quarter.

Free cash flow before M&A was negative NOK 0.2 bn. Free cash flow was impacted by payment of NOK 1.7 billion related to legal disputes in Bangladesh.

The leverage ratio at the end of the quarter was 2.4x, which is an increase of 0.2x compared to the end of 2022, impacted by adverse currency movements, dividend payout and share buyback, partly offset by positive contribution from M&A activities.

Telenor maintains the financial outlook for 2023:

Low-to-mid single-digit growth in Nordic service revenues

Low-to-mid single-digit growth in Nordic EBITDA

Nordic capex/sales of around 17 percent

Key figures Telenor Group* Second quarter

First half year

Year

NOK in million

2023

2022

2023

2022

2022

Service revenues

15 841

15 049

30 692

29 549

59 760

Organic service revenue growth (%)

4%

5%

4%

2%

3%

Total Revenues

20 224

19 247

39 411

37 678

76 877

Organic revenue growth (%)

3%

4%

4%

3%

4%

Operating expenses

(6 777)

(6 385)

(13 218)

(12 528)

(25 229)

EBITDA before other income and other expenses

8 767

8 456

16 846

16 504

33 830

Organic EBITDA growth (%)

4%

0%

3%

-1%

1%

Operating profit

4 374

1 443

8 209

6 836

15 143

Net income from associated companies and joint ventures

(100)

(67)

(291)

(172)

(301)

Net income attributable to equity holders of Telenor ASA

821

(1 113)

18 967

5 457

44 913

Capex excl. lease

3 437

3 452

6 971

6 368

13 560

Free cash flow before M&A

(191)

930

242

3 364

9 866

Total Free cash flow

(518)

856

5 147

4 446

10 604

Leverage

2.4

2.2

2.4

2.2

2.2

*Please refer to page 44 in the report for Definitions and descriptions of Alternative Performance Measures

Media contact:

David Fidjeland +47 93 46 72 24

Investor Relations:

Frank Maa +47 91 67 40 45

LINK:	https://www.telenor.com/media/newsroom/press-releases/operational-exec...
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