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Investing.com -- Telenor Group (OL:TEL) on Tuesday posted higher revenues and stable earnings in the first quarter, navigating global economic volatility and geopolitical tensions with growth in its Nordic and Asian operations.
The telecom company reported service revenues of NOK 16.1 billion, a year-over-year organic increase of 2.1%. Adjusted EBITDA reached NOK 8.6 billion, representing 2% organic growth from the same period last year.
Free cash flow before mergers and acquisitions totaled NOK 3.0 billion, driven by strong operating performance and favorable timing effects related to capital expenditures and working capital.
In the Nordic region, Telenor recorded 2.3% organic growth in service revenues, supported by operational efficiency measures that led to 5.8% organic growth in EBITDA.
The company pointed to solid customer demand in Norway for its new handset financing product, Splitt, and increased engagement with fraud-call alert services. Finland led performance among Nordic markets, delivering 9% growth in adjusted EBITDA.
In Asia, the company noted a rebound in performance. Grameenphone in Bangladesh returned to quarter-over-quarter growth following disruptions tied to civil unrest in 2023.
Telenor Pakistan also posted strong results amid what the company described as improving market conditions.
Telenor said its Amp-owned subsidiary KNL secured a 10-year contract to provide military communications technology to the defense forces of Sweden and Finland.
The agreement reflects increasing demand for regional and sovereign technology solutions in the current geopolitical climate.
The company maintained its financial guidance for 2025. It expects low single-digit organic growth in Nordic service revenues and mid-single-digit organic EBITDA growth in the region.
Group-wide, organic EBITDA growth is projected to be in the low-to-mid single-digit range. Capital expenditures excluding leases in the Nordic business are expected to account for approximately 14% of revenues. Telenor reaffirmed its annual free cash flow target of around NOK 13 billion before M&A.