Telenor Earnings: 2024 Outlook in Line With Our Expectations; Maintaining Our Fair Value Estimate

Narrow-moat Telenor reported service revenue of NOK 16.1 billion in fourth-quarter 2023, a 4.9% organic increase year over year, in line with expectations. The service revenue increase was driven by mobile price increases in all markets, except Denmark, and mobile subscriber growth in all markets, except Norway. We continue to believe Telenor can increase prices without losing subscribers, especially in Norway, where it is the incumbent with a very high market share. In Asia, service revenue increased 7%, largely due to increased data usage and price adjustments in Grameenphone and Pakistan. EBITDA grew 3.9% on an organic basis to NOK 8.5 billion, but saw a slight margin decline to a 40.4% margin from 40.9% a year ago.