Telenor has appointed new CEOs for its units in Thailand and Malaysia, with both appointments set to take effect from 1 April this year.
In effect, the current CEO of Digi in Malaysia, Lars-Åke Norling, will take on the CEO role at Total Access Communication (DTAC) in Thailand. Digi COO Albern Murty in turn steps up to become the Malaysian company’s new CEO.
Sigve Brekke will step down as the interim CEO of DTAC and return to his role as executive vice president and head of the Asia region at the Telenor Group. Brekke took on the position in September last year following the resignation of Jon Eddy Abdullah.
The reasons for Eddy Abdullah’s resignation were not disclosed, but DTAC has been struggling to maintain sales amid increased competition and a difficult economic and political environment.
In Telenor’s recent results statement for 2014, group president and CEO Jon Fredrik Baksaas noted that 2014 had been a “challenging year” in Thailand, with intense competition continuing during the fourth quarter.
“However, DTAC has taken corrective measures to strengthen its market position and return to growth. We are seeing early signs of improvement following the introduction of a cluster-based operating model, attractive market offerings and a network improvement programme. By expanding its 3G and 4G network, DTAC aims to deliver the best Internet network in Bangkok and 30 major cities this year,” said Baksaas.
In its recent Q4 results, Telenor reported group revenues of NOK29.1 billion (€3.3 billion) and organic revenue growth of 5.3%. EBITDA before other items was NOK9.1 billion, the EBITDA margin was 31.2% and operating cash flow was NOK3.46 billion.
Despite the growth in revenue and core earnings, Telenor failed to reached analyst predictions that Q4 EBITDA would hit NOK9.7 billion, Reuters noted, adding that the NOK7.30 per share dividend payment also lags the NOK7.77 per share indicated in a poll of analysts.
For 2015, Telenor provided guidance of mid-single digit organic revenue growth, which Jefferies analysts said “expresses confidence in strong top-line momentum already evident in 4Q”, particularly due to “Myanmar ramping earlier than expected”.
Guidance for the EBITDA margin was in the range of 33-35%, which Jefferies analysts described as “subdued – partly on the cost of growth (but note Myanmar spending is subject to the ‘peak funding’ budget, so just a timing issue), partly on co mpetitive issues in Thailand.”
