Telenor lowers outlook after weaker quarter
July 16, 2026 13.08 Europe/London By Julian Clover


Telenor has moderated its full-year guidance after a softer second quarter, citing weaker conditions in Norway and continued macroeconomic pressure in Bangladesh.

The Norwegian telco reported service revenues of NOK 14.68 billion and adjusted EBITDA of NOK 7.99 billion. On an organic basis, service revenues fell 0.7%, while adjusted EBITDA declined 4.8%. Free cash flow before M&A was NOK 1.82 billion.

“2026 is a transition year for Telenor on several fronts as we deliver on our strategy,” said CEO Benedicte Schilbred Fasmer. “While the quarter was affected by several short-term factors, we are executing initiatives that will improve efficiency, strengthen customer value and increase returns over time.”

The quarter was also hit by a Norwegian VAT provision relating to TV news channels for the 2020-2022 period, which reduced service revenues by NOK 135 million and adjusted EBITDA by NOK 162 million. Telenor said the prior-period charge was excluded from its updated 2026 outlook.

The group now expects flat to low-single-digit organic growth in Nordic service revenues and adjusted EBITDA, down from previous guidance of low-single-digit revenue growth and low-to-mid-single-digit EBITDA growth. Group adjusted EBITDA is now expected to be flat to slightly negative, compared with the previous forecast of flat to low-single-digit growth. Free cash flow guidance has been lowered to around NOK 10 billion, from NOK 10-11 billion.

The company said its new organisational structure would take effect in August as part of efforts to create a leaner operating model. It is also carrying dual IT cost structures as part of its transformation programme, with costs expected to begin easing towards the end of the year and into 2027.

Telenor highlighted strategic progress in the Nordics, including the approval of its GlobalConnect consumer broadband transaction in Norway, the acquisition of Enivest, and the purchase of Swedish broadband provider Bahnhof. It said the three broadband transactions should generate sizeable cash flow synergies from 2030.

Security and defence also remain a focus. Telenor-owned KNL has secured a EUR 6.5 million contract with the Finnish Defence Forces, while Telenor Norway has signed framework agreements with the Norwegian Armed Forces and the Norwegian National Security Authority.

“In a more uncertain environment, secure and resilient communications remain a key strategic focus area for Telenor,” said Schilbred Fasmer.

Sources: Telenor Q2 statement; Wall Street Journal, E24.