Telenor, after a strong first 3 quarters of 2017, achieved an even more impressive Q4 with $4.16 billion of revenue. The company closed 2017 with a total of $16.2 billion comparing to 2016’s $16.3 billion.
Fourth quarter 2017 summary
On an organic basis, revenues dropped 0.5%, while subscription and traffic revenues rose by 3%, positively impacted by a negative one-time item in Sweden last year. Currency adjusted opex decreased by $77.8 million, or 5%. EBITDA before other items was $1.5 billion, corresponding to an EBITDA margin of 37%, an increase of 3 percentage points from last year. Net income attributable to equity holders of Telenor ASA was $285.3 million, or $0.2 earnings per share. Adjusted for impairment in Tapad of $220.5 million and reversal of impairment of $155.6 million in Denmark, net income was $337.2 million. Capex excluding spectrum and licences was $713.4 million, resulting in a capex to sales ratio of 17%. Free cash flow for the quarter was $428 million.
In the fourth quarter of 2017 ‘Other income and other expenses’ consisted mainly of:
• Workforce reductions of $29 million.
• Costs related to settlement of contracts in Grameenphone of $17.2 million.
For the year 2017 ‘Other income and other expenses’ consisted mainly of:
• Other income of $18.2 million related to a positive settlement with a vendor.
• Gains on disposals related to a finance lease agreement in Broadcast, divestment of ABC Startsiden and disposal of an office property in
Kongensgate 8/Kirkegaten 9 in Oslo.
• Workforce reductions in Telenor Norway, Corporate Functions, Grameenphone, Telenor Denmark and Broadcast.
• Divestment of Telenor Banka and costs related to settlement of contracts in Grameenphone.
For the year 2016 ‘Other income and other expenses’ consisted mainly of:
• Gain on disposal of an office property in Kongensgate 21 in Oslo.
• Losses on disposals of fixed assets in Telenor Norway, Telenor Denmark, dtac and Group Functions.
• Workforce reductions in Telenor Norway, Telenor Sweden, dtac, Grameenphone, Corporate Functions, Broadcast and Telenor Denmark.