Telenor (TEL) Q2 2025 earnings summary

Executive summary

• Achieved strong Q2 results with double-digit EBITDA growth in the Nordics, led by Norway's 16.1% EBITDA growth, and continued progress in Sweden and Finland.

• Raised EBITDA growth outlook for 2025, reflecting strong operational momentum and transformation efforts in the Nordics.

• Improved performance in Asia, notably in Pakistan (EBITDA up 28%), with positive developments in Thailand and Malaysia, but ongoing macro and regulatory challenges in Bangladesh.

• Announced acquisition of GlobalConnect's Consumer Fiber Business in Norway and major fiber investment in Finland.

• Key portfolio moves included the sale of a 50% stake in Allente and conversion to direct ownership in True Corporation.

Financial highlights

• Q2 service revenues reached NOK 16,534 million, up 2.9% year-over-year organically.

• Adjusted EBITDA was NOK 9,318 million, up 8.3% year-over-year organically.

• Adjusted EPS rose 33% to NOK 2.22, with adjusted net income at NOK 3,044 million.

• Free cash flow before M&A was NOK 1.6 billion, impacted by working capital, tax outflows, and higher dividends to non-controlling interests.

• CapEx to sales ratio at 13.5%, down 1.9 percentage points from last year.

Outlook and guidance

• Raised 2025 EBITDA outlook: Nordics to high single-digit growth, Group to mid single-digit growth.

• CapEx to sales outlook for Nordics and Group reaffirmed at around 14%.

• Free cash flow guidance for 2025 maintained at around NOK 13 billion before M&A.

• Leverage expected to return to target range (1.8x–2.3x) by year-end, barring major currency moves.

• Regulatory approval for Telenor Pakistan divestment anticipated in H2 2025.