Solid cash flow supporting the dividend

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(Fornebu, February 2, 2022) Several years of modernization and digitization initiatives have enabled Telenor will deliver strong operational results for 2021, despite the impact of the ongoing pandemic. For the full year the company delivers stable subscription and traffic revenues and EBITDA. Strong free cash flow of NOK 13 billion supports the proposed dividend of NOK 9.30 per share, translating into a yield of around 6 percent.

“During the year, Telenor focused on protecting employees and providing services to customers, as demand for connectivity, digitization and data increased during the year, while ensuring the robustness of the critical infrastructure we provide. Modernizing our operations remains a top priority. , and structural initiatives delivered savings of NOK 1.2 billion during the year. More importantly, these efforts have allowed us to offer an excellent customer experience and a position to partner with Google and AWS to explore new services beyond connectivity,” said Sigve Brekke, President and CEO of Telenor Group.

In the Nordic countries, the company still delivered a good quarter. In Norway, the strategy of providing value to customers with services in addition to a world-class network is paying off, with mobile ARPU growing by 3%. With copper rollover reaching its peak, the growth of non-legacy services has not been able to fully offset the legacy decline. Demand for services and increased data speeds drove ARPU growth of 3% in Finland and 6% in Denmark. In Sweden, the market revitalization strategy resulted in stable subscription and traffic revenue and strong mobile subscriber growth in the quarter.

In Asia, revenue pressure remains due to intense competition and the impact of the pandemic, particularly in Thailand. Until 2021, Telenor has made progress in its strategy to establish strong positions in all markets. In the fourth quarter, the company announced a new merger in Asia. With this transaction, Telenor aims to combine dtac and True in Thailand and create the country’s first telecom operator.

Based on the strong financial position, strong free cash flow generation and a leverage ratio of 2.05x, the board is proposing a dividend of NOK 9.30 per share, in line with policy of dividend. The dividend represents a 3% increase over last year.

“Going into 2022, we will continue to focus on returning to growth, the opportunities we see in also going beyond connectivity, building leading operators through partnerships in Asia and further developing our infrastructure position in the Nordics For the full year 2022 and excluding Digi in Malaysia, we expect low single-digit growth in services revenue, EBITDA around the 2021 level or slightly higher and a capex-to-sales ratio of 16-17%,” says Brekke.

TELENOR GROUP KEY FIGURES* Fourth trimester Year
NOK in millions 2021 2020 2021 2020
Revenue 28,154 29,322 110,241 115,839
Organic revenue growth (%) 1.9 (3.6) 1.2 (2.7)
Subscription and traffic revenue 20,234 21,455 81,776 87 147
Organic Growth in Subscriptions and Traffic Revenue (%) (0.1) (3.2) (0.2) (2.6)
EBITDA before other income and other expenses 11,743 12,549 49,162 52,347
Organic EBITDA growth (%) (1.1) (0.4) (0.2) 1.0
EBITDA before other income and other expenses/Revenue (%) 41.7 42.8 44.6 45.2
Net income attributable to shareholders of Telenor ASA 587 7,689 1,528 17,341
Capex HT licenses and spectrum 5,865 5,596 17,942 15,811
Total investments 8,023 10,190 22,345 21,152
Free cash flow before M&A (274) 1,988 11,014 12,542
Total free cash flow (472) 9,130 12,667 20,855
Mobile subscriptions – Evolution of the quarter/Total (mill.) 0.1 2.4 172.2 165.5


*As of Q2 2021, Telenor Myanmar is classified as held for sale and discontinued operations, see note 3. Accordingly, relevant figures in the table above and throughout the report exclude Telenor Myanmar.

Fourth summary of the quarter 20211)

  • Subscription and traffic revenue remained stable on an organic basis, both for the fourth quarter and for the full year. Total reported revenue in the quarter was NOK 28.2 billion, a decrease of NOK 1.2 billion due to negative currency effects.
  • Currency adjusted operating expenses increased by NOK 0.1 billion or 1%. Reported operating expenses decreased by NOK 0.4 billion. For the full year 2021, currency-adjusted operating expenses decreased by NOK 0.6 billion or 2%.
  • Organic EBITDA decreased by 1%. Reported EBITDA before other items was NOK 11.7 billion and EBITDA margin was 42%. For the full year, organic EBITDA was stable as higher energy costs driven by price increases were offset by solid reductions in operating expenses.
  • Capital expenditure excluding licenses and spectrum fees amounted to NOK 5.9 billion, representing a capital expenditure to sales ratio of 21%. For the full year 2021, the capex to revenue ratio stands at 16%.
  • Reported net profit was NOK 0.6 billion for the quarter and NOK 1.5 billion for the full year. The net result for the quarter was impacted by the fine imposed by the Norwegian Competition Authority (NCA) of NOK 0.8 billion and the negative contribution from discontinued operations of NOK 0.5 billion.
  • Total free cash flow was negative NOK 0.5 billion for the quarter, including the payment of the fine imposed by NCA. For the full year, total free cash flow was NOK 12.7 billion. Leverage was 2.05x at the end of the year, which is in the middle of the target range of 1.8-2.3x.
  • The Group’s mobile subscriber base increased by 0.1 million during the quarter and by 6.7 million during the year. The subscriber base was 172 million at the end of the quarter.

1)Please refer to page 29 of the report for definitions and descriptions of other performance measures.

Press contacts:

David Fidjeland, Director of Media Relations, Telenor Group

+47 935 67 224 | [email protected]


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