Telenor Results Slightly Weaker Than Expected Due to Higher Costs; Maintaining FVE

Telenor's first-quarter results were slightly weaker than expected, with flat sales growth year over year and a 2% decline in EBITDA due to higher energy and one-off costs. Although management expects some spillover effects into the second quarter, they reiterated yearly guidance of low-single-digit growth in sales and stable EBITDA for 2022 as they expect a recovery in the second half of the year, something that seems achievable to us. Currency effects were more moderate this quarter, causing a NOK 0.6 billion headwind compared with NOK 1.2 billion last quarter. We maintain our NOK 147 fair value estimate.