Telenor Swung to 2Q Net Loss, Trims Guidance

By Dominic Chopping

Norwegian telecommunications provider Telenor ASA on Tuesday swung to a second quarter net loss and trimmed full-year guidance as earnings were weighed by an impairment related to Pakistan and currency losses.

The company posted a second-quarter net loss of 1.11 billion kroner ($109.9 million), compared with a net profit of NOK2.19 billion a year earlier and versus a company-compiled consensus of NOK2.3 billion.

Earnings before interest, tax, depreciation and amortization--the company's preferred measure--rose to NOK12.12 billion from NOK12.1 billion, as revenue rose 3.2% to NOK28.04 billion, the company said.

A company-compiled consensus had expected Ebitda of NOK11.94 billion on revenue of NOK27.28 billion.

Telenor said the strengthening of U.S. dollar against the Norwegian krone and weakening of Norwegian krone against other currencies led to net currency losses of NOK2.3 billion in the second quarter, while it also booked a NOK2.5 billion impairment in Pakistan related to additional spectrum fees and a NOK900 million provision in India.

The mobile subscription base grew by 2 million in the second quarter, to 175.0 million.

For 2022, Telenor said it still expects low-single-digit growth in service revenue, but now sees earnings before interest, tax, depreciation and amortization around the 2021 level, having previously seen a flat or slightly higher level.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

July 19, 2022 03:02 ET (07:02 GMT)

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