Telenor's Q2 Performance: Strong Growth and Strategic Investments
Telenor's Impressive Second Quarter Performance
Telenor Group has showcased remarkable results in the second quarter of 2025, showing a significant upswing in its financial outlook. This outstanding performance not only underscores Telenor's commitment to excellence but has also prompted an upward revision of expectations for both the Nordics and the entire Group. A noteworthy focal point for Telenor has been its strategic investments in the Nordic fibre market.
Highlights from the Quarter
During this quarter, Telenor reported service revenues amounting to NOK 16.5 billion, underscoring the company's strong market position. The adjusted EBITDA reached NOK 9.3 billion, and free cash flow before mergers and acquisitions stood at NOK 1.6 billion. This growth prompted an overall year-over-year increase in organic service revenues by an impressive 2.9 per cent, and 8.3 per cent growth in EBITDA, primarily driven by the exceptional performance of Telenor Nordics.
CEO's Positive Outlook
Telenor's CEO, Benedicte Schilbred Fasmer, expressed satisfaction with the outcomes, attributing the success to the hard work of employees committed to delivering secure and valuable network services to customers. As a result, Telenor has increased its EBITDA growth outlook for 2025 significantly based on this solid performance in the first half of the year.
Strong Results in Norway
Telenor's performance in Norway stood out this quarter with an organic growth rate in service revenues of 3.7 per cent and adjusted EBITDA growth at a remarkable 16.1 per cent. This growth has been supported by a successful national roaming agreement with Lyse Tele, contributing positively to service revenues. Additionally, a significant agreement with Hydro to provide mobile network services for their aluminum plants highlights Telenor's capability to offer tailored solutions to various industries.
International Developments and Growth
Meanwhile, Telenor Pakistan reported a thriving quarter with a service revenue growth of 15.0 per cent. In Bangladesh, Grameenphone continues to perform well despite ongoing market challenges. These diverse market engagements demonstrate Telenor’s adaptability and strategic positioning across different regions.
Investments in Digital Infrastructure
In line with its growth strategy, Telenor has announced plans to significantly upgrade DNA’s existing fixed broadband infrastructure in Finland to transform it into a fully fibre-optic network. This ambitious investment, expected to reach around NOK 1.4 billion, will enhance service delivery for housing associations by 2028.
Acquisition of GlobalConnect
Further solidifying its presence in the market, Telenor recently acquired GlobalConnect’s consumer business in Norway for NOK 6.0 billion. This acquisition encompasses vital fibre infrastructure, plus approximately 140,000 customers, which aligns with Telenor's ongoing strategy to expand its fibre network and provide enhanced services to its customers.
Future Financial Outlook
Telenor has laid out an encouraging financial outlook for 2025. The company anticipates low single-digit organic growth in Nordic service revenues, alongside increased expectations for adjusted EBITDA growth. The expected capex, excluding leases, for the Nordic business is anticipated to be around 14 per cent of total revenues, indicating Telenor's continuing commitment to invest in innovation and infrastructure. Furthermore, the Group expects to generate a robust free cash flow of around NOK 13 billion before M&A activities.
Contact Information
For any inquiries, Telenor encourages contacting Thomas Midteide, the Chief Communications Officer, at +47 96 23 20 17, or Frank Maaø, Senior Vice President of Capital Markets and Investor Relations, at +47 91 67 40 45. Their commitment to communication reflects the company's transparency and accountability to stakeholders.
Frequently Asked Questions
What were Telenor's service revenue figures in Q2?
Telenor reported service revenues of NOK 16.5 billion in the second quarter of 2025.
What impact did the GlobalConnect acquisition have?
The acquisition adds significant fibre infrastructure and approximately 140,000 customers to Telenor's network, enhancing its market position.
What is the anticipated growth for Telenor in 2025?
Telenor expects low single-digit organic growth in Nordic service revenues and high-single-digit growth in adjusted EBITDA in 2025.
Who can I contact for more information about Telenor?
Contact Thomas Midteide or Frank Maaø for inquiries related to Telenor's financial performance and strategies.
How much is Telenor investing in fibre infrastructure?
Telenor is investing approximately NOK 1.4 billion to upgrade DNA's broadband infrastructure in Finland, aiming for an all-fibre network.
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