Telenor lifts 2024 sales forecast on easing Nordic inflation, price hikes

By Jesus Calero

(Reuters) - Norwegian telecom operator Telenor raised its 2024 revenue forecast on Thursday, citing strong first-half performance and favourable inflation trends in the Nordics, and said it would keep hiking prices to boost its sales.

"Inflation in the Nordic region has come down to low-to-mid single digit levels so far this year," Telenor said in a statement.

The company raised its full-year forecast for Nordic service revenues to low- to mid-single-digit percent organic growth, compared with the previous forecast of low single-digit growth.

Telenor said it would continue to upsell its products to existing customers on a "more-for-more" price basis and pursue adjustments of prices where it sees opportunities to do so.

The strategic upselling, which includes swift 4G to 5G shifts and unlimited data plans for heavy users, has fuelled Nordic service revenues and will remain a key focus moving forward, CEO Sigve Brekke told Reuters in an interview.

"We are providing more services to customers and with that we are raising prices," Brekke said, adding that 4% to 5% of the Nordic growth was a result of the pricing strategy that included additional services.

Telenor said it also benefited from growth in the Nordic and Asian markets in the second quarter, backed by its strategic investments in technology and cybersecurity.

Following a revamp of its Asian units, Telenor is ramping up tech use in the Nordics, investing in artificial intelligence after launching a new partnership with Nvidia earlier this year.

Brekke said the company had no plans to exit or enter any other Asian markets.

Telenor's core profit (EBITDA) before other items rose to 8.79 billion Norwegian crowns ($820 million) in the April to June quarter, slightly below analysts' average forecast of 8.83 billion in a company-provided poll.

J.P.Morgan analysts pointed to a revenue shortfall and an EBITDA dip in Asia in the second quarter, but said they valued the uplift in the Nordic revenue outlook.

Shares in Telenor were 0.2% lower at 0945 GMT.

($1 = 10.7241 Norwegian crowns)

(Reporting by Jesus Calero in Gdansk; editing by Milla Nissi)