(Reuters) -Norwegian telecom operator Telenor on Wednesday posted quarterly earnings slightly below market expectations and flagged a negative adjustment of 500 million Norwegian crowns ($49.8 million) related to rising costs in Malaysia.
Telenor’s adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to 9.54 billion crowns in the third quarter, from 9.21 billion crowns a year earlier. Analysts polled by it had expected 9.60 billion crowns on average.
Overall, the company’s results were in line or a touch lower than the market consensus, helped by a solid performance in its core Nordic markets.
In Asia, Telenor saw EBITDA growth of 4.1%, partially helped by growth in Bangladesh’s leading telecom operator Grameenphone, in which the Norwegian group owns a 55.8% stake.
“Still, consumers in Bangladesh continue to be highly prudent in the wake of last year’s macro-economic setback,” CEO Benedicte Schilbred Fasmer said in the earnings statement.
In Malaysia, 5G-related costs and headwinds are increasing, she added.
“Based on the latest public information, we make a 0.5 billion crown negative adjustment to our share of results from CelcomDigi this quarter related to its associated 5G network company in Malaysia,” Schilbred Fasmer said.
Telenor is the top shareholder in Malaysia’s largest mobile network operator CelcomDigi together with Axiata, with a 33.1% stake each.
($1 = 10.0431 Norwegian crowns)
(Reporting by Elviira Luoma in Gdansk, editing by Milla Nissi-Prussak)
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