Telenor Asa · OSL:TEL
Telenor Asa — Telenor Asa Ord — Q1 2025 Earnings Presentation
37 slides from Telenor Asa's earnings presentation, May 6, 2025
Slide 1: Telenor Q1 presentation First quarter 2025
Telenor Q1 presentation First quarter 2025 CEO Benedicte Schilbred Fasmer CFO Torbjørn Wist
Slide 2: Disclaimer
Disclaimer The following presentation deck is being made only to, and is only directed at, This presentation contains statements regarding the future in connection with persons to whom such presentation may lawfully be communicated (’relevant the Telenor Group’s growth initiatives, profit figures, o
Slide 3: Contents
Contents Group highlights Nordics CEO Asia Case studies Financial highlights Group Nordics CFO Asia P&L, cash flow and leverage Outlook CEO Concluding remarks Q1 2025 3
Slide 4: Contents
Contents Group highlights Nordics CEO Asia Case studies Financial highlights Group Nordics CFO Asia P&L, cash flow and leverage Outlook CEO Concluding remarks Q1 2025 4
Slide 5: First quarter highlights
First quarter highlights Steady delivery amid Focus on business MSR growth of 4% key FCF before M&A of geopolitical and and operational driver of 6% EBITDA adj. NOK 3.0 bn macro turbulence resilience growth in Nordics Q1 2025 5
Slide 6: Nordics: delivering profitable growth through trusted networks and operational discipline
Nordics: delivering profitable growth through trusted networks and operational discipline World-class infrastructure Consistent service revenue growth Mid-single digit EBITDA adj. growth Mobile service revenues, YoY% EBITDA adj., YoY% Opex, YoY Service revenues, YoY% Trust in our secure and resilien
Slide 7: Traction in True, tentative top-line progress in GP
Traction in True, tentative top-line progress in GP Thailand • Q4 EBITDA* grew by 12% on synergy measures #1 • Guided for 2025 interim dividend subject to BoD approval mobile player • Upgraded financial ambitions towards 2027 Malaysia • Q4 EBITDA* declined 3% amid tough competition #1 mobile • Ahead
Slide 8: Fast-changing environment driving needs for local champions and sovereignty
Fast-changing environment driving needs for local champions and sovereignty Creating a Norwegian B2C Telenor AI factory Breakthrough contract in ultra-secure cloud storage challenger progressing and reliable defence communication Merging Telenor’s Min Sky service with Norway’s 1st sovereign and secu
Slide 9: Contents
Contents Group highlights Nordics CEO Asia Case studies Financial highlights Group Nordics CFO Asia P&L, cash flow and leverage Outlook CEO Concluding remarks Q1 2025 9
Slide 10: Q1 2025: Group financial highlights
Q1 2025: Group financial highlights Key Group figures, NOK and % Key ratios Q1 2024 Q1 2025 YoY % YoY: -3.3 pp CAPEX to Sales 12.8% QoQ: -6.3 pp Service revenues, mn 15,773 16,113 2.1% * EBITDA adj., mn 8,505 8,641 2.0% * YoY: 0.1 x Leverage ratio 2.2x QoQ: -0.2 x Net income adj., mn 2,616 2,681 2%
Slide 11: Contents
Contents Group highlights Nordics CEO Asia Case studies Financial highlights Group Nordics CFO Asia P&L, cash flow and leverage Outlook CEO Concluding remarks Q1 2025 11
Slide 12: Service revenues driven by the Nordics
Service revenues driven by the Nordics Group service revenues Q1 YoY% Percentage-point contribution to YoY %-growth NOK mn 15,773 16,320 16,162 16,266 16,113 0.1 2.1 0.4 0.0 1.6 5.6% 4.5% 2.1% 2.1 2.1% 1.1% % Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Nordics Asia Amp Elim. Group Organic 2.3% 1.3% 5.4% growth 12
Slide 13: Prudent opex management, led by the Nordics
Prudent opex management, led by the Nordics Opex, Group Opex YoY-change by category (NOK million* and YoY%) <blank (NOK million* and %) > 1.9% Salaries and -25 -1% Personnel 42 23 6,865 90 11 6,738 Operation and -17 -1% Maintenance -38 Sales, Marketing, 127 10% and Commission Energy 5 1% Other Opex
Slide 14: Stable group EBITDA adj. growth
Stable group EBITDA adj. growth EBITDA adjusted, Group Q1 YoY % Percentage-point contribution to YoY %-growth NOK mn 9,206 8,505 8,790 8,479 8,641 4.0 0.1 -0.2 6.9% -0.9 2.0 3.8% -1.2 1.8% 2.0% 2.0% Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Nordics Asia Infrastructure Amp Other & EBITDA elim. Organic 5.8% -0.6%
Slide 15: Contents
Contents Group highlights Nordics CEO Asia Case studies Financial highlights Group Nordics CFO Asia P&L, cash flow and leverage Outlook CEO Concluding remarks Q1 2025 15
Slide 16: Nordics growth amid continued tough competition
Nordics growth amid continued tough competition • Mobile ARPU growth of 5% Service revenues, Nordics Q1 in Norway and Denmark • Fixed ARPU growth of +6% YoY% Percentage-point contribution to YoY % -growth (NO), 3-4% (elsewhere) NOK mn 10,957 11,158 11,391 11,166 11,348 1.0 0.1 2.3 • NO: -23K postpai
Slide 17: Nordics' EBITDA adj. growth of 6% despite VAT case
Nordics’ EBITDA adj. growth of 6% despite VAT case EBITDA adjusted, Nordics Q1 YoY% Percentage-point contribution to YoY %-growth NOK mn 6,515 6,264 5,862 5,948 5,898 1.9 0.2 5.8 8.3% 0.3 1.2 6.0% 5.8% 4.6% 2.2 4.2% Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Norway Sweden Denmark DNA Other Nordics EBITDA adj. Or
Slide 18: Contents
Contents Group highlights Nordics CEO Asia Case studies Financial highlights Group Nordics CFO Asia P&L, cash flow and leverage Outlook CEO Concluding remarks Q1 2025 18
Slide 19: Asia: 1.3% SR growth, supported by sequential improvement in Grameenphone
Asia: 1.3% SR growth, supported by sequential improvement in Grameenphone Grameenphone SR Service revenues: EBITDA adjusted: growth climbed to -2.2%, (NOKmn and YoY %) strong growth in Pakistan 1.3% -0.6% 4,466 4,389 True: Upgraded targets, 894 Telenor Pakistan 1,074 solid Q4, deleveraged by Grameen
Slide 20: Contents
Contents Group highlights Nordics CEO Asia Case studies Financial highlights Group Nordics CFO Asia P&L, cash flow and leverage Outlook CEO Concluding remarks Q1 2025 20
Slide 21: EPS adj growth of 4% to NOK 1.96
EPS adj growth of 4% to NOK 1.96 PROFIT AND LOSS HIGHLIGHTS Q1 2024 Q1 2025 Q1 2024 Q1 2025 Total revenues 19,457 19,706 Service revenues 15,773 16,113 Cost of materials and traffic charges -4,248 -4,199 Opex -6,704 -6,865 EBITDA adjusted 8,505 8,641 Other income and expenses 1,283 -198 Satelitte ga
Slide 22: FCF before M&A of NOK 3.0 bn
FCF before M&A of NOK 3.0 bn Q1 free cash flow, with drivers (NOK mn) EBITDA adj. 8,641 Income taxes paid -871 Half of which Grameenphone Net interest paid -494 Seasonally low in Q1 and Q3 Operating Working capital 482 Timing effects in Nordics and Asia Dividends from associates 341 Dividends from C
Slide 23: Net leverage within the target range
Net leverage within the target range Leverage ratio and NIBD Short-term factors Seasonality of dividend payments 140 120 Target leverage 1.8x-2.3x 100 Macro and FX fluctuations in Bangladesh 80 60 40 77.5 87.8 80.4 79.8 79.0 83.2 83.5 86.8 81.5 End-of-quarter EUR/NOK 20 0 Q1 23 Q2 23 Q3 23 Q4 23 Q1
Slide 24: Contents
Contents Group highlights Nordics CEO Asia Case studies Financial highlights Group Nordics CFO Asia P&L, cash flow and leverage Outlook CEO Concluding remarks Q1 2025 24
Slide 25: Reaffirmed outlook for 2025
Reaffirmed outlook for 2025 TELENOR NORDICS Q1 2025 actuals 2025 Outlook Organic service revenues 2.3% Low single-digit growth Organic EBITDA adj. growth 5.8% Mid single-digit Capex/sales (excl.leases) 12.4% Around 14% TELENOR GROUP Organic EBITDA adj. growth 2.0% Low-to-mid single-digit FCF before
Slide 26: Concluding remarks
Concluding remarks Q1 2025 26
Slide 27: Save the date: November
Save the date: 11 November Q1 2025 27
Slide 28: Q&A
Q&A Q1 2025 28
Slide 29: Appendix
Appendix
Slide 30: Norway
Norway Mobile subscribers (‘000) Service revenues (NOK mn) and EBITDA margin EBITDA Margin Service revenues -2.3% 5,024 5,114 5,187 5,158 5,079 1.1% 2,631 2,615 2,620 2,600 2,570 52.8% 54% 54.1% 51% 51% 52% 49% Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Mobile ARPU (NOK/month) EBITD
Slide 31: Sweden
Sweden Mobile subscribers (‘000) Service revenues (NOK mn) and EBITDA margin EBITDA Margin Service revenues 1.5% 2,491 2,518 2,585 2,573 2,458 2,959 2,963 2,974 2,993 3,003 0.8% 52.8% 54.1% 36% 39% 37% 35% 35% Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Mobile ARPU (SEK/month) EBITDA
Slide 32: Denmark
Denmark Mobile subscribers (‘000) Service revenues (NOK mn) and EBITDA margin EBITDA Margin Service revenues 1.5% 1,132 1,114 1,171 1,086 1,099 5.7% 54.1% 1,674 1,666 1,682 1,696 1,699 52.8% 33% 35% 33% 32% 27% Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Mobile ARPU (DKK/month) EBITD
Slide 33: Finland
Finland Mobile subscribers (‘000) Service revenues (NOK mn) and EBITDA margin EBITDA Margin Service revenues 1.1% 2,450 2,509 2,445 2,535 2,378 2,762 2,788 2,814 2,803 2,792 54.1% 52.8% 4.5% 39% 40% 41% 38% 35% Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Mobile ARPU (EUR/month) EBITD
Slide 34: Q1 2025: Nordics fixed broadband
Q1 2025: Nordics fixed broadband Total fixed broadband subscriptions (‘000) Nordic fixed service revenues, NOK mn and share of total (%) FWA Fibre Cable DSL Finland Norway Sweden Denmark Finland 590 17% 724 705 684 680 695 649 184 156 Denmark 162 365 5% 366 Norway 684 115 1,857 415 431 649 106 54% 3
Slide 35: Bangladesh
Bangladesh Mobile subscribers (‘000) Service revenues (NOK mn) and EBITDA margin 2.2% EBITDA Margin Service revenues 3,823 3,622 85,276 84,564 84,252 84,817 3,572 3,400 82,978 3,315 61% 60% 59% 57% 57% -2.2% Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Mobile ARPU (BDT/month) EBITDA a
Slide 36: Pakistan
Pakistan Mobile subscribers (‘000) Service revenues (NOK mn) and EBITDA margin EBITDA Margin Service revenues -2.6% 1,031 1,074 955 933 894 44,659 44,438 43,857 43,155 43,496 14.0% 47% 45% 41% 39% 41% Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Mobile ARPU (PKR/month) EBITDA adjusted
Slide 37: Debt information
Additional facts: Debt information Net debt reconciliation of the Net debt APM: NOK in million Q1 25 Q1 24 2024 Non-current interest-bearing liabilities 70,608 72,730 76,328 Non-current lease liabilities 13,290 13,697 13,925 Bond maturity profile (NOK bn) Current interest-bearing liabilities 7,621 1