Telenor (TEL) Q2 2025 earnings summary

Executive summary

• Delivered strong Q2 2025 results with double-digit EBITDA growth in the Nordics, especially Norway, and improved performance in Asia, despite ongoing geopolitical and macroeconomic challenges.

• Adjusted EPS grew 33% year-over-year, driven by operational efficiencies and transformation programs.

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

• Challenging macro and regulatory environment in Asia, but positive developments in spectrum awards and EBITDA growth in key markets.

• 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.

• Adjusted EBITDA was NOK 9,318 million, an 8.3% increase year-over-year, with Nordics as the main driver.

• Net income to equity holders was NOK 3,725 million; adjusted EPS at NOK 2.22, up 33%.

• Free cash flow before M&A was NOK 1,612 million in Q2; CapEx to sales ratio at 13.5%.

• Leverage ratio ended at 2.4x, influenced by dividend payments and currency effects.

Outlook and guidance

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

• Reiterated CapEx/sales outlook for Nordics and Group at around 14%, with upside risk due to fiber investments.

• Free cash flow before M&A expected at around NOK 13 billion for the year.

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

• Effective tax rate for 2025 estimated at 25%.