In the second quarter, we deliver performance in line with our expectations with a 2% growth in service revenues and stable EBITDA. The headwind from copper decommissioning in Norway, high energy prices globally and expenses related to the ongoing strategic projects are compensated by positive items this quarter.

“Halfway into 2022, we see businesses and consumers increasingly wanting to protect their digital assets, driving demand for our security services in the Nordic region. I am pleased to see that Telenor continues to be an attractive partner in our customers’ digitalisation journey”, says Sigve Brekke, President and CEO of Telenor Group.

The quarter demonstrated solid mobile performance. In the Nordics, this is driven by required price adjustments to compensate for the inflationary environment, and continued demand for services on top of connectivity. Our mobile network in Norway has once again been confirmed as the fastest network in the country.

“In Asia, an important milestone was reached this quarter as we received regulatory approval for the merger between Celcom and Digi in Malaysia”, says Brekke.

Based on the performance in the first half of the year, for 2022 we expect low single digit growth in organic service revenues, organic EBITDA around 2021 level, and a capex to sales ratio of 16-17%.

Second quarter summary

• Total reported revenues were NOK 28.0 billion which is an increase of NOK 0.9 billion compared to the same period last year. Service revenues increased by 1.5% on an organic basis.

• Reported opex increased by NOK 0.3 billion. Organic opex increased by NOK 0.2 billion, positively impacted by NOK 0.4 billion relating to items in Norway and Thailand.

• Reported EBITDA before other items was NOK 12.5 billion which is an increase of 1.2%. Organic EBITDA increased by 0.3% including NOK 0.6 billion relating to three positive items in Norway, Thailand and Other units.

• Capex excluding licences and spectrum fees was NOK 4.7 billion, yielding a capex to sales ratio of 17%.

• An impairment loss of NOK 2.5 billion was recognised related to Pakistan as a consequence of deteriorating macro-economic situation and adverse ruling of Supreme Court in the licence renewal case, see note 2.

• Net income attributable to equity holders of Telenor ASA was negative NOK 1.1 billion for the quarter. Net income was impacted by currency losses of NOK 2.3 billion and the impairment related to Pakistan.

• Total free cash flow was NOK 0.9 billion for the quarter.

• In May, Telenor ASA paid the first tranche of the dividend for 2021 of NOK 7.0 billion or NOK 5.0 per share

• Leverage increased to 2.2x from 1.9x at the end of the previous quarter mainly as a result of dividend payment and negative currency effects.