07-05-2025
Telenor ASA (TELNF) Q1 2025 Earnings Call Highlights: Strong Nordic Growth Amidst Global Challenges
Q : Why did Telenor decide to stick with mid-single-digit guidance for Nordic EBITDA growth despite strong Q1 performance? A : Benedicte Schilbred Fasmer, Group CEO, explained that it's still early in the year, and there are fluctuations expected throughout the year. The company remains confident in its mid-single-digit guidance and will adjust as necessary as the year progresses. Torbjorn Wist, EVP & CFO, added that the cost allocation between Nordic and other categories contributed to the decision, with some costs reallocated to headquarters and other areas.
Telenor experienced higher churn in Norway and Finland, with increased competition in the B2B market and a decline in fixed broadband subscribers.
The company is expanding its AI factory to meet the growing demand for sovereign and secure AI solutions, with plans to scale further.
Telenor's Nordic mobile networks were recognized as the best in the region by OpenSignal, and Ookla awarded Telenor Norway as the fastest mobile and 5G network.
The company achieved a 5.8% EBITDA growth in the Nordics, driven by a 3.9% increase in mobile service revenue and a 1% decline in OpEx.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
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Q: Can you elaborate on the potential for consolidation in the Nordic telecom market? A: Benedicte Schilbred Fasmer, Group CEO, stated that the European telecom market has over 100 players, and there is a need for scale, especially with the need for larger investments in networks. Telenor sees opportunities for in-market consolidation, particularly in Denmark and Sweden, and believes there might be a more positive climate for such mergers now.
Q: What is driving the weaker KPIs in Norway and Finland, and what is the strategy to address this? A: Benedicte Schilbred Fasmer, Group CEO, noted that there was higher churn in Norway due to back book changes, and competition in Denmark and Finland has intensified. The company has implemented back book price changes and included a wider array of services, which has resulted in a slight downturn in subscriber numbers but maintained a strong top line.
Q: Could you provide more insight into the defense contracts and their potential impact on service revenue? A: Benedicte Schilbred Fasmer, Group CEO, mentioned that while it's early days, the defense contracts, particularly in Finland, are currently small. However, Telenor has significant relationships with armed forces, especially in Norway, and sees potential for increased activity and opportunities in this area.
Q: How does Telenor plan to improve performance in Celcom Digi, and what steps can be taken as a joint venture partner? A: Benedicte Schilbred Fasmer, Group CEO, explained that Telenor supports Celcom Digi through board seats and operational roles to help improve performance. The company is taking measures to enhance both top-line and cost-side performance, with the merger plan and synergies remaining on track.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
