OSLO (Reuters – Norway’s Telenor announced Wednesday that its earnings are expected to be largely flat, or slightly higher than in last year. It posted quarterly profits lower than forecasts.

For October and December, adjusted earnings before interest taxes, depreciation, amortization, and amortization (EBITDA), fell 6.5% to 11.7 Billion Norwegian crowns ($1.33B) year-on-year, while analysts polled expected 12.2 Billion.

In 2021, the company saw its overall revenue decline by 4.8% due to the sale of Myanmar operations. However, adjusted for these, it showed an increase in revenue by 1.2%.

Chief Executive Officer Sigvebrekke stated in a statement that “Entering 2022 we will keep our focus on returning growth.”

Telenor’s efforts into 5G and cloud technology will drive expansion, which is also known as “beyond connectivity”. The CEO said that plans to tie up in Thailand and Malaysia and continue development of the company’s Nordic infrastructure would be key factors.

Telenor proposes a 9.30 crowns dividend per share. This is in comparison to 9.0 crowns per year and was in line with analyst’s median expectation from the earnings poll.

According to the company, COVID-19 continues to impact revenue for the group in Asia. The most severe economic effects are felt in Thailand and Malaysia. Subscription revenues have also suffered.

Telenor Group, which boasts over 172 million subscribers and receives about half of its revenues from Asia, and most from the Nordic region, is expecting “low single digit” growth for its organic revenue revenue in 2022.

According to it, capital expenditure is likely to reach 16-17% this year.

Telenor decided last year to leave Myanmar after a coup. This resulted in a substantial write-off. Final approval for the sale is still required.

Telenor’s shares price rose 5.3% in the year to date, beating a 0.9% decrease in Norway’s benchmark stock index.

($1 = 8.8256 Norwegian crowns)