Story
Telenor Cuts 2026 Outlook on Nordic Weakness and Q2 Profit Decline
Summary
Norwegian telecom giant Telenor has reduced its full-year 2026 financial guidance after reporting a significant drop in second-quarter profit, citing weaker performance in its core Nordic markets and ongoing challenges in Bangladesh.
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.
AdAccording 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.
Read next
More on Stocks
Netflix, HPE, and Fluence Hit by Key Analyst Downgrades
Wall Street analysts issued significant downgrades for several high-profile companies, with Netflix receiving its first-ever 'Sell' rating and Fluence Energy facing a cascade of cuts after slashing its guidance.
California's Proposition 40 Proposes One-Time 5% Tax on Billionaires Amid Heated Debate
California voters will decide in November on Proposition 40, a ballot initiative to impose a one-time 5% tax on its wealthiest residents. The measure faces significant opposition and uncertain polling despite the state's large concentration of billionaire wealth.
China Rare Earth Group in Reported Talks to Acquire Shenghe Resources
State-owned China Rare Earth Group is reportedly in talks to buy Shenghe Resources, a move that would consolidate Beijing's control over the sector and create a stake in a U.S. producer. Shenghe has denied the report.
Saudi, Gulf Stocks Decline After Houthi Group Claims Attack on Riyadh
Stock markets in Saudi Arabia and across the Gulf region fell after Yemen's Houthi group claimed responsibility for missile and drone attacks on Riyadh, amplifying investor concerns over escalating regional conflict.