Telenor ASA (TELNY) Q4 2024 Earnings Call Highlights: Strong Free Cash Flow and Nordic Growth

Telenor ASA (TELNY) delivered a solid performance in the fourth quarter of 2024, with a strong free cash flow and robust growth in the Nordic region. The company's strategic direction and transformation efforts have contributed significantly to its solid financial performance. Let's dive into the key highlights of Telenor's Q4 2024 earnings call.

Strong Free Cash Flow

Telenor's free cash flow for the quarter was an impressive NOK 13.3 billion, well above the outlook for the year. This strong performance was primarily due to EBITDA growth in the Nordics and reduced working capital. The company's free cash flow exceeded dividend payments, indicating a healthy cash flow situation.



Nordic Growth

Telenor's Nordic service revenues grew by 2.3 percent in the quarter, with organic EBITDA growth ending at 6.0 percent due to efficiency initiatives. The company's solid market position in the Nordics, combined with its focus on customer satisfaction, contributed to the growth in service revenues. Finland was the growth winner in the quarter, but Telenor delivered solid results across all Nordic markets.

Strategic Direction and Transformation Efforts

Telenor's strategic direction and transformation efforts have been instrumental in driving its solid financial performance. The company has made significant structural improvements, generating substantial operational savings. Telenor has also finished restructuring its group management team to bolster execution capabilities, which has likely contributed to the company's strong performance.



Challenges and Outlook

While Telenor's performance in the Nordics was solid, the company faced challenges in Bangladesh due to the slow economic recovery following severe unrest in the summer of 2024. However, Telenor's team has shown tremendous resilience in the face of these challenges, and Telenor Pakistan shows impressive performance despite challenging macroeconomic conditions.

Looking ahead, Telenor's ambition for the current year is a free cash flow of around NOK 13 billion, before M&A and any potential items. The company's strong cash flow is important to deliver on Telenor's dividend policy of nominal growth in dividends. The Telenor Board of Directors proposes a total dividend of NOK 9.60 per share for the financial year 2024 to the Annual General Meeting in May.

In conclusion, Telenor ASA (TELNY) delivered a strong performance in the fourth quarter of 2024, with a robust free cash flow and impressive growth in the Nordic region. The company's strategic direction and transformation efforts have contributed significantly to its solid financial performance. As Telenor continues to execute its 2025 strategy and evolve future strategies, investors can expect the company to maintain its strong performance and drive growth in the coming years.