Telenor is targeting subscription and traffic revenue growth between zero and 2 percent per year from 2020 to 2022, the operator announced at its Capital Markets Day on 03 March. It still plans a year-on-year increase in its ordinary dividend per share over this medium term. In addition, Telenor aims for net operating expenditure reductions of between 1 percent and 3 percent annually and a ratio of capital expenditure to sales of approximately 15 percent.
Telenor added that by 2030, it intends to have carbon-neutral business operations in the Nordic region and a 50 percent cut in CO2 emissions at its Asian operations. It's also aiming for 35 percent of its senior leaders to be women by 2023.
Telenor said it aims to maintain a healthy balance sheet and have normalised free cash flow cover the ordinary dividend. As such, its dividend and leverage policies remain unchanged. It is targeting debt at 1.8-2.3x EBITDA over the 2020-2022 period.
The company said that in recent years, it has taken important steps in its modernisation and has fulfilled its financial guidance. Its updated strategy represents a continuation of this, with particular focus on revenue renewal and growth, modernisation, and responsible business.
President and CEO Sigve Brekke said Telenor is at the forefront of efficient network operations but there remains potential for improvements. He said revenue growth should be supported by opportunities in emerging Asia and strong demand for adjacent services in the Nordic region.
Brekke said continuing to modernise will be essential to keep Telenor relevant for customers and to prepare for the future. It wants 65 percent of customers to be active data users by 2023.
