Telenor Expects Sales and EBITDA Improvement in 2023; Maintaining NOK 130 Fair Value Estimate

Telenor’s fourth quarter was in line with company-provided consensus expectations, recording 1.9% organic growth in revenue and flat EBITDA year over year. For 2023, Telenor is expecting revenue and EBITDA growth in the low- to mid-single-digit range in the Nordics, an acceleration compared with 2022 and in line with its medium-term targets. Telenor has been increasing prices across all its Nordic markets in both mobile and broadband plans to compensate for higher inflation costs. This resulted in mobile service revenue growth of 5% in the Nordics during the quarter. We believe Telenor has capacity to increase prices without losing subscribers, especially in Norway, where it is the incumbent with very high market share. We are maintaining our NOK 130 fair value estimate. The shares are up more than 5% at the time of the writing due to the improved financial outlook for 2023.