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Introduction & Market Context
Telenor ASA (OTC:TELNY) (OB:TEL) presented its second quarter 2025 results on July 18, highlighting exceptional performance in the Nordic region that led to a significant upgrade in its full-year EBITDA growth outlook. The telecommunications company reported substantial improvements across key financial metrics, building on the momentum seen in the first quarter of 2025.
The company’s stock closed at NOK 139.95 following the Q1 results, and the strong Q2 performance is likely to further bolster investor confidence. According to the presentation delivered by CEO Benedicte Schilbred Fasmer and CFO Torbjørn Wist, Telenor’s strategic focus on Nordic transformation and fiber expansion is yielding tangible results amid varying conditions across its Asian markets.
Quarterly Performance Highlights
Telenor reported impressive financial results for Q2 2025, with Group service revenues increasing by 2.9% year-over-year to NOK 16,534 million, accelerating from the 2.1% growth seen in Q1. The Group’s adjusted EBITDA showed remarkable growth of 8.3% year-over-year, reaching NOK 9,318 million, a significant improvement from the 2% growth reported in the previous quarter.
As shown in the following comprehensive financial overview, the company also achieved substantial increases in net income and earnings per share:
Net income adjusted rose by 31% to NOK 3,044 million, while adjusted earnings per share increased by 33% to NOK 2.22. However, free cash flow before M&A declined by 27% to NOK 1,612 million. The company’s CAPEX to sales ratio improved by 1.9 percentage points year-over-year to 13.5%, while the leverage ratio stood at 2.4x, slightly above the target range of 1.8x-2.3x.
The profit and loss statement further illustrates the solid financial performance, with total revenues reaching NOK 20,315 million and reported EBITDA of NOK 9,857 million:
Nordic Operations Analysis
The standout story of Q2 2025 was the exceptional performance in Telenor’s Nordic operations. Service revenues in the region grew by 3.7% year-over-year to NOK 11,756 million, with Norway emerging as the largest growth contributor at 1.7 percentage points, followed by Finland (DNA) at 1.0 percentage points.
The following chart illustrates the impressive EBITDA growth trajectory in the Nordic region:
Nordic EBITDA adjusted showed remarkable growth of 12.5% year-over-year in Q2 2025, reaching NOK 6,782 million. Norway was the key driver with a 16.1% increase, contributing 8.5 percentage points to the overall Nordic EBITDA growth. Sweden and Finland (DNA) also delivered strong performances with EBITDA growth of 9.0% and 9.7% respectively.
The company attributed this exceptional Nordic performance to higher revenues and significant opex reductions in Norway, with the transformation work in the region clearly paying dividends:
Asian Market Performance
Telenor’s performance in Asian markets presented a mixed picture. The company maintains leading positions as the #1 mobile player in Thailand, Malaysia, and Bangladesh, while holding the #3 position in Pakistan.
In Thailand, Telenor reported 7% EBITDA growth in Q1 through its investment in True, which recorded its first positive reported net profit. Malaysia faced challenges with an "intensely competitive market" and "headwinds from unprecedented 5G model," though the company received quarterly dividends of NOK 345 million in June.
Bangladesh continued to face challenging macro conditions, though the company noted "encouraging execution" with EBITDA growth improvement quarter-over-quarter. Pakistan delivered impressive 28% EBITDA growth in Q2, helped by favorable energy costs, though the approval for Telenor’s exit from the market is "regrettably dragging on" but expected to close in H2.
The following slide provides a comprehensive overview of Telenor’s Asian operations:
Strategic Initiatives
A key strategic focus for Telenor is strengthening its fiber positions in Norway and Finland. The company announced the acquisition of GlobalConnect’s consumer fiber business in Norway, which will add 140,000 fiber customers and increase Telenor’s fiber market share from 22% to 29%. The transaction is valued at NOK 6 billion and is expected to provide significant cost synergies.
In Finland, Telenor plans comprehensive fiber upgrades for housing-association customers, with a commitment to provide fiber to all DNA’s MDU (Multi-Dwelling Unit) customers by 2028. This initiative represents an investment of approximately EUR 120 million over 2025-2028 and aims to nurture DNA’s leading fixed position in Finland in response to growing demand for capacity.
The following slide details these strategic fiber initiatives:
Updated Outlook
Based on the strong performance in the first half of 2025, particularly in the Nordic region, Telenor has raised its EBITDA growth outlook for the Nordics from mid single-digit to high single-digit for the full year 2025. The company maintained its guidance for low single-digit organic service revenue growth and capital expenditure of around 14% of sales for the Nordic operations.
The updated outlook reflects Telenor’s confidence in the continued strength of its Nordic business and the success of its transformation initiatives:
Conclusion
Telenor’s Q2 2025 results demonstrate significant momentum in the company’s business, particularly in the Nordic region where transformation efforts are yielding substantial improvements in both top-line growth and profitability. The strategic focus on fiber expansion in Norway and Finland positions the company for continued growth in high-value fixed broadband services.
While challenges persist in some Asian markets, particularly Bangladesh and Malaysia, the strong performance in Thailand and Pakistan provides some balance to the regional portfolio. The expected closure of the Pakistan exit in the second half of 2025 will further streamline the company’s operations.
With the raised EBITDA growth outlook for the Nordics, Telenor appears well-positioned to deliver strong financial results for the full year 2025, building on the exceptional performance seen in the second quarter.
Full presentation:
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