Telenor lifts 2025 EBITDA outlook on strong Q2 Nordic performance

Published 18/07/2025, 06:54
© Reuters

Investing.com -- Telenor Group (OL:TEL) on Friday raised its 2025 earnings guidance after posting solid second-quarter results, driven by strong performance in the Nordic markets, particularly Norway.

The telecom company now expects high-single-digit organic growth in adjusted EBITDA in the Nordics, up from a mid-single-digit range. 

Group-level guidance was also revised upward to mid-single-digit organic EBITDA growth, from a previous low-to-mid-single-digit range. 

Free cash flow before mergers and acquisitions is projected at around NOK 13 billion for the year. 

Capital expenditure excluding leases in the Nordics is expected to make up approximately 14% of revenues.

For the second quarter, Telenor reported service revenues of NOK 16.5 billion and adjusted EBITDA of NOK 9.3 billion. 

Free cash flow before M&A reached NOK 1.6 billion. Year-over-year, organic service revenue rose 2.9%, while adjusted EBITDA grew 8.3%.

Norway led regional performance, delivering 3.7% growth in service revenues and a 16.1% increase in adjusted EBITDA. 

Revenues from a national roaming agreement with Lyse Tele (ice) contributed positively. 

In June, Telenor signed an eight-year agreement with Hydro to deliver mobile network services, including indoor and outdoor coverage, Secure Cloud Connect and IoT subscriptions, to six aluminum plants in Norway.

Across the Nordics, Telenor posted 3.7% organic growth in service revenues, supported by offerings in network coverage, security and cloud storage.

In Pakistan, Telenor recorded 15.0% service revenue growth for the quarter. Grameenphone maintained stable operations amid continued challenges in the Bangladesh market.

For the first half of 2025, the Group reported adjusted EBITDA of NOK 18.0 billion and free cash flow before M&A of NOK 4.6 billion.

Telenor also announced two fibre-related moves totaling NOK 7.4 billion. In Finland, the company will invest NOK 1.4 billion over three years to upgrade DNA’s fixed broadband network to an all-fibre system for housing association customers by 2028. 

The company also confirmed the NOK 6 billion acquisition of GlobalConnect’s consumer business in Norway, which includes fibre infrastructure and roughly 140,000 fibre customers.

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