In a quarter marked by global economic instability and geopolitical turbulence, Telenor Group has demonstrated resilience with notable financial growth. The Nordic telecom company reported an increase in its first-quarter revenues despite challenges posed by fluctuating tariffs and geopolitical uncertainties. These disruptions, however, have also presented new business opportunities for the firm. Key achievements include service revenues of NOK 16.1 billion, adjusted EBITDA of NOK 8.6 billion, and free cash flow before mergers and acquisitions reaching NOK 3 billion. Additionally, year-over-year organic growth in service revenues climbed to 2.1%, with EBITDA growing organically by 2%.
Resilient Growth Across Markets
Amidst the unpredictable global climate, Telenor's CEO, Benedicte Schilbred Fasmer, emphasized the importance of monitoring potential impacts on both operations and finances. In the Nordic region, Telenor experienced a robust 2.3% organic growth in service revenues, bolstered by efficiency initiatives that resulted in a 5.8% organic EBITDA growth. Notably, customer-friendly innovations such as 'Splitt' in Norway and fraud-call alerts contributed positively. Finland led as the top-performing market, achieving a commendable 9% adjusted EBITDA growth.
Internationally, Grameenphone in Bangladesh showed significant improvement following last summer’s unrest, while Telenor Pakistan delivered strong results amidst favorable market conditions. Furthermore, geopolitical uncertainty has spurred interest in sovereign and regional solutions. A recent example includes KNL securing a ten-year contract for military communications technology with Sweden and Finland.
On the technological front, Telenor AI Factory, Norway's pioneering generative artificial intelligence platform, continues to gain traction. Leveraging NVIDIA’s advanced AI technologies, this initiative processes Norwegian data domestically, aligning with sovereignty concerns. Customer interest has surged due to recent geopolitical tensions, prompting Telenor to plan a substantial four-fold increase in GPU capacity by year-end.
Fasmer expressed pride in Telenor’s ability to uncover opportunities and create value even during challenging times, reinforcing the company's commitment to digital infrastructure and shared values.
Financial Outlook Highlights Potential
Looking ahead to 2025, Telenor anticipates low single-digit organic growth in Nordic service revenues, mid-single-digit organic growth in EBITDA within the region, and capex excluding leases accounting for approximately 14% of revenues. The group aims for low-to-mid single-digit organic growth in overall EBITDA, expecting free cash flow around NOK 13 billion before M&A activities.
From a journalistic perspective, Telenor’s achievements underscore the significance of adaptability and innovation in navigating turbulent times. Their strategic focus on customer-centric solutions and sovereign technologies not only enhances their competitive edge but also fortifies trust among clients. This approach serves as a testament to how companies can harness adversity to drive progress and sustainable growth.