Telenor shares drop as stalling revenue growth cuts outlook

Bloomberg

Telenor ASA, Norway’s state owned carrier and biggest operator in the Nordic region, slid as much as 4.4 percent after its earnings dropped in the second quarter and it cut its full-year outlook amid increased competition in its key markets.
The company posted earnings before interest depreciation and amortisation of 11.1 billion kroner ($1.3 billion), missing an estimate of 11.3 billion kroner.
Revenue was in line with estimates at 28 billion kroner.
Telenor shares dropped more than 4 percent in early trading in Oslo.
With slow growth in mature markets in the Nordic region and competition at its units across Asia, Oslo-based Telenor said it now sees subscription and traffic revenue “around the 2018 level” versus an earlier outlook for 2 percent growth.
It also predicted “a low single digit” drop in Ebitda, compared to an earlier forecast of 1-3 percent growth.
This takes into account the inclusion of Dtac, an “adjusted outlook from Digi” and a provision in Bangladesh.
In April, Telenor agreed to buy a majority stake in Finnish operator DNA Oyj, further challenging rival Telia’s position in the Nordic region.
After chasing growth in Asia and eastern Europe, the company has shifted focus to markets closer to home.