Telenor Asa Stock Earnings Reports

Q2 2026 was a mixed quarter for Telenor. Group service revenues fell 0.7% and adjusted EBITDA declined 4.8% (underlying on a fully comparable basis: service revenue +0.3% and EBITDA -2.3%). Weakness was driven by tougher mobile competition and promotional activity in Norway, competitive pressure in Finland, and macro/inflationary effects in Bangladesh. Short-term EBITDA and OpEx are being weighed down by peak-year transformation and IT migration costs, along with timing effects and a TV VAT provision in Norway. Management is progressing a sharpened Nordic strategy and several value-adding transactions: Telenor Connexion partnership (expected proceeds ~NOK 4 billion upon close), approval for GlobalConnect (Norway broadband), announced acquisition of Bahnhof (would make Telenor ~#2 fixed player in Sweden), and stronger traction in defense/mission-critical contracts. Amp’s NAV is ~NOK 15 billion. Balance sheet remains strong (net debt NOK 51.5bn, leverage 1.4x), the NOK 15bn buyback program is underway, and dividend commitment remains intact. Given Q2 performance and technical/market effects (loss of procurement revenue from True, deconsolidation of Telenor Connexion, slower-than-expected revenue momentum in parts of the Nordics, and Bangladesh uncertainty), management revised guidance: Telenor Nordics now expects organic service revenue and adjusted EBITDA growth of flat to low single digits in 2026; group adjusted EBITDA expected flat to slightly negative. Nordics CapEx to sales is expected around 14% for the year. Transformation costs should roll off from 2027 and deliver material OpEx savings beyond 2026. Key near-term risks: competitive intensity in Norway, macro/backdrop in Bangladesh, timing of transformation benefits, and regulatory approvals for announced transactions.