Telenor Cuts 2026 Outlook on Nordic Weakness and Q2 Profit Decline

Telenor ASA on Thursday lowered its financial outlook for 2026 after second-quarter earnings fell short, pressured by slower growth in its Nordic operations and a challenging macroeconomic environment in Bangladesh.

Revised Annual Guidance

The Norwegian telecommunications group adjusted its key forecasts for the full year, signaling a more cautious outlook for investors. The company now expects organic adjusted EBITDA growth to be flat to slightly negative, a downgrade from its previous forecast for flat to low single-digit growth.

Key changes to the 2026 guidance include:

• Free cash flow (before M&A): Narrowed to around NOK 10 billion, from a prior range of NOK 10 billion to NOK 11 billion.
• Nordic Business: The forecast for both service revenue and EBITDA growth was trimmed to a flat to low single-digit range.

Second-Quarter Performance

The revised outlook follows a challenging second quarter that saw declines across key financial metrics compared to the previous year. The company reported that slower-than-expected revenue growth and higher operating costs impacted results.

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According to the earnings release, Telenor's second-quarter results were:

• Adjusted EBITDA: Fell 9.0% to NOK 7.99 billion.
• Reported Revenue: Declined 5.1% to NOK 18.14 billion.
• Net Income (attributable to shareholders): Dropped 32.3% to NOK 2.52 billion.

Management Commentary

Chief Executive Benedicte Schilbred Fasmer attributed the downgrade to several factors, including sluggish revenue growth in Norway and Finland, increased operating expenses, and contract-related headwinds. She also highlighted the difficult macroeconomic backdrop in Bangladesh as a key pressure point.

Despite the current challenges, Fasmer noted that the benefits from the company's ongoing transformation program are expected to become more apparent toward the end of the year.