Telenor continues to deliver on security offering and growth

18 Jul 2024 07:00 CEST

Telenor has completed the first half of 2024 with solid results in both the
Nordics and Asia. Strategic investments in technology and cybersecurity provide
a solid foundation for further growth.

Service revenues in the second quarter ended at NOK 16.3 billion, corresponding
to an organic increase of 4.5 per cent compared to the same period last year.
EBITDA ended at NOK 8.8 billion, corresponding to organic growth of 3.8 per
cent. Telenor generated a free cash flow of NOK 2.2 billion in the period.

Telenor Nordics and Telenor Asia delivered four and six per cent organic growth,
respectively, in service revenues during the second quarter of the year; while
organic EBITDA growth ended at four and two per cent, respectively. The Nordic
transformation has reduced costs, supporting a flat OPEX development in Telenor
Nordics for the quarter.

In total, Telenor Group delivered an EBITDA result of NOK 17.3 billion in the
first half of the year, and a free cash flow before M&A of NOK 5.5 billion.

"Telenor is on track and continues to deliver on a strategy that works. We still
have strong and profitable growth and solid cost control in the Nordic region –
headed by Sweden and Finland in the last quarter. In Asia, we have seen a
positive uplift in Thailand, partly because of tourism picking up again, as well
as synergies," says Sigve Brekke, CEO of Telenor.

Consumers, businesses and the public sector are all increasingly exposed to
digital crime. 1 of 5 Norwegian business leaders say they have experienced
cyberattacks in the past year, according to a Norstat survey.

Telenor has stopped more than a billion digital crime attempts against its
customers in Norway so far this year. Blocking fraudulent sites, phishing
attempts and malware downloading are the most common incidents, in addition to
many fraud attempts via phone calls and SMS. Telenor continues to monetize the
more-for-more strategy, providing security products to its customers.

Telenor Cyberdefence was established in June to focus on security and to protect
customers from digital criminals. The Telenor Amp subsidiary will develop
advanced security products for the corporate market faster and even better
suited to the market demand, contributing to securing Norwegian and Nordic
businesses. In July, Telenor Cyberdefence acquired the Norwegian security
company Combitech.

"We have taken a leading position in security and are showing that we mean
business. We work every day to develop new and better products to take care of
our customers. We now continue to attack this market with full force, which is
necessary to protect our customers from well-organized, and increasingly
sophisticated, criminal networks," says Brekke.

Technology is key to combat digital crime and strengthen customer experience in
all channels, while also driving operational efficiencies.

Earlier this year, Telenor launched a strategic partnership with Nvidia, as part
of an ambitious plan for investments in artificial intelligence (AI). The
strategic investment in the data center company Skygard was another important
milestone in the first half of the year. In June, Telenor decided to expand its
partnership with Amazon Web Services (AWS) to advance its sovereign cloud
posture by using AWS’s sovereign-by-design technology and to enhance the digital
transformation of Telenor.

"When I took over as CEO nine years ago, we talked about connectivity as a basic
necessity for all, but also about finding new ways to create value in people’s
digital lives - we are really doing that now. While I am satisfied with the
solid results for the first half of the year, I am even more satisfied with the
way we are reshaping and developing Telenor. We have built a strong foundation
for the next 5-10 years to come," says CEO Sigve Brekke.

Financial outlook for 2024:
• Low-to-mid single-digit organic growth in Nordic service revenues (updated
from low-single digit)
• Medium single-digit organic growth in both Nordic and Group EBITDA.
• Nordic capex to sales ratio of around 17 per cent.
• Free cash flow of between NOK 9-10 billion before M&A and potential items
related to prior years’ activities.

More information:
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623795_Presentation Q2 2024..pdf
623795_Report Q2 2024.pdf