Key Takeaways:
Telenor ASA (TEL.OL) lowered its 2026 earnings guidance after first-quarter core profits fell short of analyst estimates by 2.4 percent, citing slower growth in the Nordics and operational headwinds in Bangladesh.
"While we remain confident in our medium and long-term financial ambitions, we adjust the organic EBITDA growth outlook for 2026 somewhat down due to the top-line headwinds in Finland and Bangladesh," chief executive Benedicte Schilbred Fasmer said in a statement.
The Norwegian telecom operator reported adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of 8.05 billion Norwegian crowns ($864.6 million), below the 8.25 billion crowns expected by analysts. Net income attributable to equity holders more than tripled to NOK 8.21 billion, boosted by a NOK 12.2 billion gain from the divestment of its stake in Thailand's True Corporation.
The company now sees group organic adjusted EBITDA growth as flat-to-low-single-digit for 2026, a reduction from its previous low-to-mid-single-digit forecast. The second quarter will be particularly challenging, Fasmer noted, with the stock's reaction pending market open.
The revised outlook reflects persistent competitive pressures in Finland and the impact of energy shortages in Bangladesh, which have dampened consumer spending. Service revenues in Finland declined 0.2 percent organically, while in Bangladesh, service revenues for its Grameenphone unit fell 1.9 percent organically.
Telenor's Nordic operations delivered organic adjusted EBITDA growth of 3.8 percent to NOK 6.49 billion, supported by a 3.2 percent rise in service revenue in its home market of Norway. However, the company trimmed its Nordic forecast for 2026 to low-to-mid-single-digit growth from mid-single-digit previously.
The company is executing a strategy to become more focused on the Nordic region. The sale of its Pakistan unit in December 2025 and the True Corporation stake sale in Thailand have bolstered its balance sheet, with leverage falling to 1.2 times from 2.2 times at the end of 2025. Telenor plans to initiate a 15 billion crown, three-year share buyback program in the second quarter, subject to shareholder approval.
The results highlight the challenges facing Telenor as it pivots its portfolio. The guidance cut suggests near-term profitability pressures may persist. Investors will watch the company's annual general meeting on May 19 for approval of the share buyback program.
This article is for informational purposes only and does not constitute investment advice.
