Telenor plans to cut 6,000 jobs by 2020

Telenor headquarters, Bulgarian MPTelenor headquarters.Photo: Norway Today Media

Telenor delivered a result in line with expectations for the fourth quarter last year. The company plans to cut the number of full-time employees by 6,000 by 2020.

 

That is approximately 2,000 people each year for the next three years, and 750 of them are employed in Norway.

‘It is a consequence of our business becoming more digital. We see that traffic from customer centres in Norway is declining by 20% year after year. There are fewer conversations that come in because people talk with us through ‘My Telenor ‘ instead, and this trend will continue,’ said Sigve Brekke, CEO of Nettavisen.

Telenor has made significant cuts in the past year, including at Harstad, where 82 employees have lost their jobs.

Further streamlining or sacking (whatever your vernacular)

Telenor delivered  results for the fourth quarter of 2017, which Brekke denoted as solid, but at the same time noted that further streamlining measures are needed.

‘Telenor delivered solid results for 2017. Our strategic priorities, good work across the company, and further streamlining measures have delivered results,’ said Brekke, saying that the state-owned telecom giant had reached financial targets during the year, and reported strong financial results.
In total, Telenor reduced costs by NOK 1.6 billion last year, which contributed to increased profitability, and a cash flow of NOK 25 billion.

Operating profit grew by more than NOK 1.1 billion, and pre-tax profit improved
by NOK 137 million to NOK 4.1 billion. The company also proposed a dividend of NOK 8.10 per share for 2017. The total dividend of NOK 12.2 billion to the shareholders is the highest dividend in Telenor ever.

The fourth quarter results were in line with analysts’ expectations. Operating profit before other revenues and expenses amounted to NOK 11.8 billion, giving a margin of 37%. This is an increase of 3% over last year. However, in the third quarter, the EBITDA margin was a record high of 42.2%.

Considering sales

In Sweden, Denmark, Hungary, Bulgaria, Serbia, and Montenegro, the company reported increased revenues, and improved operating results. In Asia, the results were somewhat weaker in Malaysia, Bangladesh, and Myanmar, while the company improved its performance in Pakistan, and Thailand.

Telenor announced last week that the company has received offers for its subsidiaries in Hungary, Bulgaria, Montenegro, and Serbia, and is now considering a possible sale.

A conclusion will be drawn during the first three months of this year.

‘With a goal of creating value for  shareholders.

 

© NTB Scanpix / Norway Today

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