July 17, 2018 / 8:44 AM / a month ago

UPDATE 1-Telia's Norwegian deal raises pressure on Telenor

(Recasts with Telia-TDC deal, adds CEO, analysts, share)

By Gwladys Fouche

OSLO, July 17 (Reuters) - Shares in telecoms operator Telenor fell on Tuesday on concerns that rival Telia’s acquisition of TDC’s Norwegian business could dent its market share in its home base.

Adding to the downbeat mood, Telenor reported second-quarter earnings which were slightly below forecast.

Sweden’s Telia said it was buying Danish company TDC’s operations in Norway for 21 billion crowns ($2.60 billion) in a deal it said would boost its position as a “strong challenger” in mobile, TV and broadband.

Norway generated 24 percent of Telenor’s revenues in the second quarter.

“This is bad news,” said Sparebank 1 Markets analyst Petter Kongslie. “Telia becomes a larger competitor in Norway.”

Telenor shares were down 2.3 percent at 0840 GMT, lagging a European telecoms index down 0.8 percent.

Telenor said it was not worried about Telia’s expansion in Norway.

“We don’t see any big effects. It has always been a competitive market and it will be,” Chief Executive Officer Sigve Brekke told an earnings presentation. “We are satisfied with the strong position we have.”

Telenor presented its second-quarter earnings on Tuesday, which came in just below forecast, with its profit before interest, tax, depreciation, amortisation and other items, or adjusted EBITDA, falling to 11.3 billion crowns from 11.6 billion a year ago.

Analysts had expected a profit of 11.4 billion crowns. Telenor reiterated its outlook.

$1 = 8.0851 Norwegian crowns Reporting by Gwladys Fouche Editing by Amrutha Gayathri/Keith Weir

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below