On Thursday, Telenor revised down its financial outlook for 2026 after reporting second-quarter results that fell short of prior expectations. The Norwegian telecom group said it now anticipates organic adjusted EBITDA growth for 2026 to be flat to slightly negative, a reduction from its earlier projection of flat to low single-digit growth.
The company also narrowed its guidance for free cash flow before mergers and acquisitions to around NOK 10 billion, down from a previous range of NOK 10 billion to NOK 11 billion.
For its Nordic operations, Telenor reduced its forecasts and now expects service revenue and EBITDA growth to be flat to low single-digit, trimming both metrics from earlier guidance.
Chief Executive Benedicte Schilbred Fasmer pointed to a combination of factors behind the downgrade: slower-than-expected revenue growth in Norway and Finland, rising operating costs, contract-related headwinds and a challenging macroeconomic backdrop in Bangladesh. She said the companys transformation programme is expected to yield clearer benefits later in the year.
Financially, adjusted EBITDA for the second quarter fell 9.0% to NOK 7.99 billion, down from NOK 8.78 billion a year earlier. Reported revenue decreased 5.1% to NOK 18.14 billion. Net income attributable to shareholders dropped 32.3% to NOK 2.52 billion.
The revisions reflect a convergence of regional trading weakness and operational pressures. In the Nordics, slower revenue momentum in key markets was cited as a primary contributor to the change in expectations for both service revenue and EBITDA. In Bangladesh, Telenor said conditions remain pressured by the broader macroeconomic environment, which continues to weigh on performance.
Management emphasized that while near-term guidance has been adjusted, the firm expects the transformation programmes effects to become more visible toward the end of the year. The companys narrowed cash-flow guidance signals managements intent to set clearer expectations for investors amid the evolving trading backdrop.
What this means
- Telenor has trimmed 2026 organic adjusted EBITDA growth to flat to slightly negative from a prior range of flat to low single-digit growth.
- Free cash flow before M&A guidance was narrowed to around NOK 10 billion from NOK 10 billion-NOK 11 billion.
- Second-quarter adjusted EBITDA, revenue and net income all declined year-on-year.