Telenor Swung to 2Q Net Profit; Backs Guidance After Beating Market Views on Earnings, Revenue

By Joe Hoppe

Telenor ASA said Thursday that it swung to a second-quarter net profit, and backed full-year guidance after beating market expectations for earnings and revenue.

The Norwegian telecommunications provider posted a second-quarter net profit of 821 million kroner ($81.8 million) compared with a net loss of NOK1.11 billion a year earlier.

Earnings before interest, tax, depreciation and amortization before other items--the company's preferred measure--rose to NOK8.77 billion from NOK8.46 billion, as revenue climbed to NOK20.22 billion from NOK19.25 billion, the company said.

A company-compiled consensus had expected Ebitda before other items of NOK8.48 billion on revenue of NOK19.75 billion.

Telenor said its connectivity for customers and attractive security offerings were driving growth.

"We maintain our focus on progress in modernization and efficiency initiatives that will drive improved cash-flow generation over time," President and Chief Executive Sigve Brekke said.

For 2023, Telenor said it still expects low to mid-single-digit growth in both service revenue and Ebitda in the Nordics, with a capital expenditure-to-sales ratio of around 17%.

Write to Joe Hoppe at joseph.hoppe@wsj.com

(END) Dow Jones Newswires

July 20, 2023 01:35 ET (05:35 GMT)

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