Telenor Maintains 2015 Goals Amid Emerging Market ExpansionStephen Treloar
Telenor ASA maintained its cost saving and cash-flow targets for 2015 as the Nordic region’s largest phone operator expands its emerging market operations to reduce its reliance on its home market.
Telenor, based in Fornebu near Oslo, maintained its goal of 5 billion kroner ($847 million) in cost savings and operating cash flow of 28 billion kroner to 30 billion kroner in 2015, it said in presentation slides published ahead of its capital markets day today.
“Continued growth combined with improved efficiency is vital to reaching our cash flow target,” Chief Executive Officer Jon Fredrik Baksaas said in a statement.
The operator is seeking growth in Russia, India and other parts of Asia as competition intensifies in the Nordic region. Telenor agreed to buy Globul, the second-largest mobile carrier in Bulgaria, in April for 717 million euros ($958 million) and in June won licenses to expand telecommunications in Myanmar, one of the world’s last remaining untapped markets where only about one in 10 has a mobile phone.
Shares in Telenor climbed as much as 1.8 percent to 133.3 kroner in Oslo, the highest intraday level in a month. The stock traded 1.7 percent higher as of 11:45 a.m., giving the company a market value of 202 billion kroner.