Telenor (TEL) Q3 2025 earnings summary

Executive summary

• Strong Q3 performance with 2.7% organic service revenue growth and 5.4% adjusted EBITDA growth, led by the Nordics and supported by improved profitability in Asia despite macroeconomic and regulatory headwinds.

• Free cash flow before M&A surged 50% year-on-year to NOK 4,191 million, driven by solid EBITDA.

• Strategic procurement partnership with Vodafone announced, targeting significant cost savings and enhanced supply chain resilience.

• Net income attributable to equity holders was NOK 3,027 million; adjusted net income was NOK 2,533 million, down 2.7% year-on-year due to higher taxes and lower associate contributions.

• Asia delivered positive EBITDA growth, notably in Pakistan and Grameenphone, but faced challenges in Malaysia and ongoing transition from voice to data.

Financial highlights

• Group service revenues were NOK 16,345 million, up 2.7% year-on-year.

• Adjusted EBITDA was NOK 9,544 million, up 5.4% year-on-year.

• Adjusted EPS was NOK 1.85, down 2.7% due to a NOK 530 million accounting adjustment for CelcomDigi.

• Free cash flow before M&A reached NOK 4,191 million, up 49.6% year-on-year.

• ROCE (LTM) at 8.6%; leverage ratio stable at 2.3x, within target range.

Outlook and guidance

• 2025 outlook reaffirmed and tightened: group adjusted EBITDA growth expected at 5-6%, free cash flow before M&A around NOK 13 billion.

• Nordics expected to deliver 2-3% service revenue growth and 8-9% EBITDA growth.

• CapEx-to-sales ratio for the group at 13.3%-13.4%.

• Leverage to remain within 1.8x-2.3x target range.

• Ongoing exit from Pakistan may close in 2026; loss of recurring cash flows expected post-sale.