Telenor (TEL) CMD 2025 summary

Strategic direction and transformation

• Focus on services-led growth, customer excellence, and leveraging world-class networks, especially in the Nordics, while actively managing and simplifying the Asia portfolio for long-term value creation.

• Technology transformation includes full migration to cloud-native platforms, scaling AI across customer interactions, networks, and internal operations, and targeting over 80% cloud-native IT systems in Nordics and Asia by 2028.

• Emphasis on operational excellence, cost reduction, and capital intensity tapering, particularly in the Nordics, with a target of reducing OpEx to sales from 29% in 2025 to 27% by 2028.

• Sustainability, resilience, and security are core, with new midterm ESG targets, 69% GHG emissions reduction by 2030, net zero by 2045, and integration of security into connectivity offerings.

• Streamlined business areas: Nordics, Asia, Infrastructure, and Amp, each with tailored strategies for growth, efficiency, and portfolio optimization.

Financial guidance and ambitions

• Committed to growing dividends per share annually, covered by free cash flow before M&A, and maintaining leverage within the 1.8x–2.3x target range.

• Free cash flow (excluding associates) targeted at NOK 12–13 billion by 2028 and NOK 14–15 billion by 2030, with associate dividends as upside.

• Return on capital employed (ROCE) projected to exceed 11% by 2028 and 12% by 2030, up from 8.6% today.

• CapEx intensity in the Nordics expected to decline from 19% in 2022 to below 13% by 2028 and 11–12% by 2030, reflecting completion of major 5G and fiber rollouts.

• Organic service revenue growth in the Nordics guided at low single digits, with organic EBITDA growth in the low to mid-single digits through 2028 and 2030.

Business area highlights and transformation

• Nordic operations have delivered strong revenue, EBITDA, and cash flow growth, driven by a successful more-for-more and services-led strategy, with ambitions to triple cash flow by 2030 from the 2022 baseline.

• Transformation programs combine local autonomy with pan-Nordic initiatives, including shared services, centralized procurement, and AI-driven customer care, yielding significant cost and efficiency gains.

• In Asia, portfolio reshaped to one controlled and two associated companies, reducing risk and unlocking value through mergers, with continued focus on active ownership and potential further simplification.

• Infrastructure: Largest tower company in Nordics, EBITDA margin up to 62%, focus on asset utilization and secure operations.

• Amp: Growth in IoT and security, develop-or-divest approach, and over NOK 6bn in divestment proceeds since 2022.