Telenor Q3 will get shock increase from one-off acquire in Pakistan

OSLO -Telenor’s third-quarter core earnings got here in increased than estimated as a consequence of a one-off acquire in Pakistan, the Norwegian telecoms operator stated on Wednesday, and likewise reiterated that it expects its full-year revenue to be according to 2021 ranges.

Dented by hovering inflation and intense competitors, the corporate’s shares have misplaced 35% year-to-date, closing at a 10-year low on Tuesday.

The operator, which has about 175 million clients in eight international locations throughout the Nordic area and Asia, issued a revenue warning for 2022 final month, citing spiralling power prices.

“For the group, excessive power costs, particularly in Norway, Denmark and Pakistan, proceed to be a headwind,” Chief Government Officer Sigve Brekke stated in a press release on Wednesday.

“Nonetheless, the unfavourable results are, this quarter, countered by a reversal of SIM tax provision in Pakistan.”

The acquire of 600 million crowns ($57.79 million) in Pakistan, one in every of Telenor’s 4 Asian markets, was linked to a court docket resolution on the applicability of tax on cell phone SIM playing cards for the interval from 2014 to 2020.

Adjusted earnings earlier than curiosity, tax, depreciation and amortisation (EBITDA) for July-September rose 1.6% year-on-year to 13.06 billion crowns, whereas analysts on common had anticipated 12.51 billion crowns.

The one-off acquire may assist Telenor meet its annual aim of unchanged revenue versus final 12 months, it stated.

The group maintained its funding forecast for the 12 months, predicting capital expenditure would quantity to 16-17% of gross sales, and reiterated that service income would see “low single-digit development”.

“We see constructive developments for cell service income within the Nordic area, with a development of 4% within the third quarter,” Brekke stated.

Final month, the corporate introduced a restructuring of its Nordic enterprise and a possible itemizing of its Asian unit.

($1 = 10.3828 Norwegian crowns)

Supply hyperlink