Telenor reported underlying service revenues up 1 percent in the first quarter, in line with its full-year outlook for 1-2 percent growth in traffic and subscription revenue. Growth was led by Grameenphone in Bangladesh, as well as Malaysia's Digi and the Scandinavian operations. Total reported revenues fell by 2 percent to NOK 27.1 billion due to negative currency effects. The adjusted EBITDA margin was up 4 percent points from a year ago to 41.7 percent, thanks to cost efficiency efforts.
Telenor said it reduced operating expenses by NOK 0.8 billion, helping adjusted EBITDA grow to NOK 11.3 billion from NOK 10.5 billion a year earlier, equal to organic growth of 10 percent. Net profit rose to NOK 5.0 billion from NOK 4.2 billion in Q1 2017. Capex excluding spectrum and licences fell to NOK 3.1 billion or 11.3 percent of revenues, but was up to 17.3 percent of revenue when including costs such as the new spectrum in Bangladesh. Free cash flow still increased, to NOK 2.6 billion from NOK 2.2 billion a year earlier.
Telenor maintained its outlook for the full year 2018, for organic subscription and traffic revenue growth of 1-2 percent and organic EBITDA growth of 2-3 percent. Capex excluding licences and spectrum has been reduced pending the planned sale of the Central and Eastern European operations, to NOK 17-18 billion.
The number of mobile subscriptions increased by close to 2 million during the quarter, raising the total base to 170 million. Bangladesh and Pakistan led the growth, adding 2.1 million and 1.0 million subscribers respectively, offsetting losses of 0.8 million in Thailand and 0.5 million in Myanmar. Just over half (52%) of subscribers were active data users, stable compared to the end of 2017.
