Telenor (TEL) Q1 2026 earnings summary

Executive summary

• Delivered steady Q1 2026 performance amid challenging macro conditions, with organic service revenue up 1.6% and adjusted EBITDA up 3.1% year-over-year, driven by Nordic strength and Norway's wholesale revenues, despite headwinds in Bangladesh and Finland.

• Achieved NOK 2.1 billion free cash flow before M&A; total free cash flow reached NOK 31.9 billion, including NOK 29.8–30 billion proceeds from the True Corporation stake sale.

• Continued portfolio simplification with the sale of Telenor Pakistan and a 25% stake in True, and reduction of True stake to be completed within two years.

• Announced a NOK 15 billion share buyback program over three years, starting after AGM approval.

• Adjusted 2026 EBITDA growth outlook downward due to headwinds in Bangladesh and Finland, and internal business transfers.

Financial highlights

• Q1 service revenues: NOK 14.8 billion; adjusted EBITDA: NOK 8.0 billion; EBITDA margin: 44.2%.

• Net income: NOK 3.0 billion adjusted, NOK 8.2 billion reported, boosted by a NOK 12.2 billion gain from the True sale and offset by an NOK 8.0 billion CelcomDigi impairment; EPS: NOK 2.22, up 15% year-over-year.

• CapEx to sales: 12.5%; leverage ratio improved to 1.2x after the True sale.

• FX effects reduced reported service revenues, EBITDA, and free cash flow by NOK 0.4, 0.3, and 0.2 billion, respectively.

• ROCE at 4.8%, or 13.6% excluding associates and JVs; net debt: NOK 46.2 billion.

Outlook and guidance

• 2026 group EBITDA guidance revised to flat to low single-digit organic growth (from low to mid single-digit), reflecting headwinds in Bangladesh and Finland.

• Nordic EBITDA growth now expected at low to mid single-digit (from mid single-digit), with low single-digit service revenue growth.

• Free cash flow before M&A and incremental spectrum expected at NOK 10–11 billion for 2026, despite negative FX impact.

• Capex-to-sales ratio guided around 14%.

• Q2 expected to be particularly challenging for EBITDA growth due to tough comps and ongoing transformation costs.