Telenor ASA Q2 2020 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Usman Ghazi - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : I just had a question on the service revenue development, which is shown in 1 of the slides where you show the difference between the developed Asia trend through January to June and the emerging Asia trend. I think it's on Slide 6. In that, I mean, the emerging Asia trend obviously seems -- has recovered which is encouraging. But the trend in developed Asia, it saw a leg down in March. So from -- I can see from growth of 3% to now minus 3%. And it seems to have settled in that minus 3% with no improvement since lockdowns were lifted. I was just wondering if you could talk to that and just indicate perhaps why we're not seeing an improvement in the trend in June as a result of easing lockdowns in that part of the segment? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 16, 2020 / 7:00AM, TEL.OL - Q2 2020 Telenor ASA Earnings Call

Question: Roman Arbuzov - JPMorgan Chase & Co, Research Division - Analyst : I'll start with 1 on Bangladesh and Pakistan. Can you please comment on the regulatory developments in Bangladesh, in particular, the new initiatives that were launched in the context of the Significant Market Power framework in July? And what effect do you expect to have that on your business? And also in the context of this, you've mentioned some uncertainties that have -- that Bangladesh and Pakistan have. So is there anything in particular that's concerning? For example, is there any signs of the lockdowns coming back? If you can just give us additional color, that would be helpful.

Question: Roman Arbuzov - JPMorgan Chase & Co, Research Division - Analyst : Okay. Can I just ask a follow-up to Tone, perhaps building on the question that was asked earlier as well. In terms of the NOK 1 billion impact from COVID, once we come to the second quarter of 2021, so same time next year, how much of that NOK 1 billion do you think we're going to see in your EBITDA potentially come back into the numbers? And how much of that is going to be eaten up presumably by some short-term mitigation measures that you have implemented such as that you said the marketing expenditure and costs that are naturally correlated with revenues. So how much of that NOK 1 billion do you think we're going to see back? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 16, 2020 / 7:00AM, TEL.OL - Q2 2020 Telenor ASA Earnings Call Tone Hegland Bachke;EVP and Chief Financial Officer I think that's a question that is impossible to answer where we stand today. We are obviously constantly working on the cost base, as Sigve also talked a lot about. And where we are on this next year, we will see them.

Question: Frank Maa° - DNB Markets, Research Division - Analyst : Just a brief follow-up on some of the same topics around cost structure over the structural part of the cost reduction. So if you look at specifically the sales and marketing costs, there has been certain movement towards digital channels during the quarter. And how much of that has basically -- is likely to be more permanent, a lot more permanent switch in your view? So that perhaps, especially in emerging markets, we -- do you expect to see some of that kind of savings effect from not paying physical retail commissions and so on being sticky as these countries come out of the pandemic?

Question: Johanna Ahlqvist - SEB, Research Division - Analyst : So last -- perhaps 2 questions of today, if I may then. The first one, it's a follow-up to previous questions on the COVID impact. You mentioned NOK 1 billion in the first half. I'm just wondering, is that sort of the magnitude that you also expect for the second half? Is it sort of the NOK 1 billion that we should talk about. And then I'm just wondering the mix here because, obviously, the roaming impact has been quite substantial now in the second quarter, and I expect that to level off, that maybe something else will take over. So that's the first one. And the second one relates to, you REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 16, 2020 / 7:00AM, TEL.OL - Q2 2020 Telenor ASA Earnings Call talked about sort of strategic alternatives in the Asian footprint. And I'm just wondering, has the COVID situation sort of delayed that process in any way or how are things developing?