Telenor Group has released its financial results for third quarter 2018 today. Telenor Pakistan has delivered another good quarter with revenue growth and strong profitability with Subscription and traffic revenues increasing by 10% and total revenues showing an increase of 11.5% reaching to PKR 29.976 Billion, up PKR 3.081 Billion from the same quarter last year. Reported EBITDA margin was 77%, but adjusted for reversals, the underlying margin was 54%.
Pakistan
In Pakistan, we delivered another good quarter with revenue growth and strong profitability, also positively impacted by reversals of provisions and temporary abolishment of taxes on cellular services from June.
- In Pakistan, we delivered another good quarter with revenue growth and strong profitability, also positively impacted by reversals of provisions and temporary abolishment of taxes on cellular services from June.
- The number of subscriptions decreased by 0.3 million during the quarter, taking the total base to 42.9 million, which is 6% higher than at the end of the third quarter last year.
- Subscription and traffic revenues increased by 10%, primarily from higher subscription base and the effect of tax abolishment.
- Reported EBITDA margin was 78% but adjusted for reversals the underlying margin was 54%.
- Capex continued towards expanding the 4G footprint in addition to IT infrastructure.
Third quarter 2018 summary
- On an organic basis, subscription and traffic revenues were stable, while total revenues increased by 1%. Total reported revenues were NOK 27.6 billion, which is an increase of 1%.
- Reported opex continued to decrease by NOK 0.3 billion or 3%.
- EBITDA before other items was NOK 12.4 billion with an EBITDA margin of 45%, or 2 percentage points above last year. Organic EBITDA growth was 6%, positively impacted by a reversal of provisions.
- Net income attributable to equity holders of Telenor ASA was NOK 5.8 billion, or NOK 3.96 per share.
- Capex excluding licenses and spectrum was NOK 4.2 billion, resulting in a capex to sales ratio of 15%.
- Free cash flow for the quarter was NOK 26.5 billion following the divestment of our assets in Central and Eastern Europe.
Shareholder remuneration
- In September, Telenor resolved to pay out a special dividend of NOK 4.40 per share following the divestment of our assets in Central and Eastern Europe. The dividend was paid out in October, returning a total of NOK 6.4 billion to shareholders.
- In addition, Telenor bought back 7.7 million shares during the quarter and is well on track to finalize the market purchases of the 2% buyback programme before year-end. In combination with the ordinary and special dividend, the buyback programme approved by the General Assembly on 2 May 2018 will return a total of close to NOK 23 billion to shareholders in 2018.
Outlook
- For 2018, we adjust our expectations to an organic subscription and traffic revenue growth of 0-1%, an organic EBITDA growth of 3-4% and CapEx excluding licenses and spectrum of NOK 16-17 billion.
