Jørgen Weidemann's questions to TELENOR (TELNY) leadership • Q3 2024
Question
Jørgen Weidemann asked for clarification on why the Pakistan operation, with nearly NOK 2 billion in EBITDA, is expected to have a minimal free cash flow contribution, questioning what cash outflows bridge this gap.
Answer
Acting CFO Kasper Kaarboe explained the significant difference between EBITDA and free cash flow for the Pakistan operation. He identified three key factors: a higher tax rate than in the Nordics, significant cash outflows for lease payments on towers, and ongoing, albeit limited, CapEx requirements. These elements combined explain the bridge from a large EBITDA figure to a minimal free cash flow contribution.