Earnings Alerts

Telenor ASA (TEL) Earnings Miss Estimates: 4Q EBITDA Margin and Net Income Insights

By February 6, 2025 No Comments
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  • Telenor’s Ebitda margin for Q4 was reported at 41.4%, slightly below the estimate of 41.8%.
  • Revenue was NOK 20.50 billion, down 2.1% year-over-year, and below the estimated NOK 20.74 billion.
  • Nordic revenue details:
    • Norway generated NOK 6.44 billion compared to an estimate of NOK 6.96 billion.
    • Sweden’s revenue was NOK 3.26 billion, missing the NOK 3.46 billion estimate.
    • Denmark earned NOK 1.53 billion against an estimate of NOK 1.61 billion.
    • Finland’s revenue was NOK 3.32 billion, just under the NOK 3.4 billion estimate.
  • Asian revenue stood at NOK 5.32 billion, exceeding the estimate of NOK 5 billion.
  • Bangladesh reported NOK 3.81 billion against an estimate of NOK 3.69 billion.
  • Pakistan saw revenue of NOK 1.28 billion, above the estimate of NOK 1.22 billion.
  • Net income was NOK 1.74 billion compared to a loss of NOK 7.68 billion in the same period last year, falling short of the NOK 1.91 billion estimate.
  • Organic revenue decreased by 0.6%.
  • Pretax profit reached NOK 3.11 billion, compared to a loss of NOK 5.71 billion year-over-year, but below the estimate of NOK 3.63 billion.
  • Capital expenditure was NOK 3.92 billion, up 27% year-over-year, slightly exceeding the estimate of NOK 3.83 billion.
  • Adjusted Ebitda was NOK 8.48 billion, in line with the estimates and representing a slight year-over-year increase of 0.1%.
  • Service revenue totaled NOK 16.27 billion, with organic service revenue growth of 1.1%.
  • For 2024, a dividend per share of NOK 9.60 was declared, slightly above the NOK 9.57 estimate.
  • The company forecasts adjusted free cash flow to be about NOK 13 billion for the year.
  • Telenor anticipates low-to-mid single-digit organic Ebitda growth in 2025.
  • The strategic focus remains on growth and transformation, with plans to reduce capital expenditure in 2025.
  • CEO Benedicte Schilbred Fasmer expressed confidence in the company’s financial outlook, acknowledging some risks but noting improved visibility.
  • The company expects the net leverage ratio to return to its target range within the year, though temporary variations may occur.
  • Market response includes 16 buy ratings, 9 hold ratings, and 1 sell rating.

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A look at Telenor ASA Smart Scores

FactorScoreMagnitude
Value3
Dividend5
Growth3
Resilience2
Momentum4
OVERALL SMART SCORE3.4

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

According to Smartkarma Smart Scores, Telenor ASA, an international telecommunications company operating in multiple markets, has received a solid overall assessment. The company’s high Dividend score of 5 indicates a strong dividend payout history, making it an attractive option for income-focused investors. Additionally, Telenor ASA has shown promising Momentum with a score of 4, showcasing positive trends in stock performance and market sentiment.

While Telenor ASA demonstrates strengths in Dividend and Momentum, its Value and Growth scores stand at 3 each, signifying moderate performance in these areas. The company’s Resilience score of 2 suggests there may be room for improvement in terms of withstanding market challenges. Overall, Telenor ASA‘s strategic positioning as an international telecommunications provider with a diverse range of services could bode well for its long-term prospects in the evolving communication industry.

### Telenor ASA is an international provider of tele, data and media communication services, and has mobile operations in 13 markets across the Nordic region, Central and Eastern Europe and Asia. The Group also offers fixed telephony, broadband and TV services in the Nordic region. ###


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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