Telenor Reports Strong Financial Performance and Unveils Major Share Buyback Initiative

Nordic telecommunications operator strengthens shareholder value through strategic capital allocation while advancing market simplification.

Norwegian telecommunications giant Telenor has concluded the fiscal year with robust operational results and announced a substantial three-year share buyback initiative valued at NOK 15 billion. The program signals management confidence in the company’s financial position as it transitions toward a concentrated Nordic business model.

The telecommunications provider generated fourth-quarter service revenues of NOK 19.8 billion, representing growth of 2.6 percent compared to the prior year period. Adjusted earnings before interest, taxes, depreciation, and amortization expanded 11.7 percent to NOK 8.6 billion during the quarter. Free cash flow before mergers and acquisitions reached NOK 4.1 billion for the three-month period ending December 31, 2025.

For the complete fiscal year, Telenor delivered adjusted EBITDA of NOK 34.5 billion alongside free cash flow before M&A transactions totaling NOK 12.9 billion. These figures demonstrate sustained operational momentum across key markets despite regional headwinds.

Nordic Operations Drive Revenue Expansion

The Scandinavian region remained the primary growth driver for Telenor during the fourth quarter. Nordic operations generated organic service revenue growth of 2.8 percent while adjusted EBITDA climbed 8.7 percent. This performance reflects sustained customer retention and improved average revenue per user metrics across Sweden, Norway, Denmark, and Finland.

The telecommunications infrastructure division Amp contributed meaningfully to consolidated results through its subsidiary KNL, which secured expanded contracts with Finnish and Swedish military forces for mission-critical communications systems. Volume growth at Connexion, another Amp business unit, accelerated 24 percent year-over-year.

Data center investments also featured prominently in quarterly developments. Skygard, where Telenor Infrastructure maintains a 31.7 percent ownership position, completed the acquisition of two facilities that doubled operational capacity and strengthened competitive positioning in the regional market.

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Margins Improve Amid Portfolio Rationalization

The telecommunications operator has executed a deliberate strategy to streamline international holdings and concentrate resources on Nordic markets. This approach yielded multiple portfolio transactions during the fiscal year.

Management completed the divestiture of satellite television joint venture Allente to media company Viaplay. The sale of Telenor Pakistan also reached completion. Most significantly, the company signed an agreement to dispose of its ownership stake in Thai telecommunications provider True Corporation, a transaction valued at approximately NOK 39 billion.

These strategic exits reduce geographic complexity and currency exposure while generating capital for redeployment. Chief Executive Benedicte Schilbred Fasmer emphasized that portfolio simplification enhances strategic flexibility and lowers operational risk across the enterprise.

Capital Allocation Framework Rewards Investors

The Board of Directors has proposed a dividend distribution of NOK 9.70 per share for fiscal 2025, maintaining alignment with management’s commitment to progressive dividend increases. This represents continuity in shareholder compensation alongside the newly announced buyback program.

The three-year repurchase initiative, totaling NOK 15 billion, will commence following completion of the True Corporation share sale, subject to regulatory approvals. Schilbred Fasmer stated the program balances shareholder returns with maintaining adequate financial capacity for organic investment and potential Nordic acquisitions.

Proceeds from the True transaction will fund debt reduction through early repayment of an NOK 11.5 billion bond maturity. An additional NOK 6 billion will finance the acquisition of Global Connect Norway’s consumer business, expanding Telenor’s domestic fiber infrastructure.

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Competitive Dynamics Shape Strategic Direction

Telenor operates in mature telecommunications markets characterized by intense price competition and saturating mobile penetration. Operators increasingly differentiate through network quality, enterprise solutions, and value-added digital services rather than subscriber acquisition.

The Nordic focus allows Telenor to leverage economies of scale while addressing regulatory familiarity and cultural proximity. This geographic concentration contrasts with previous international expansion strategies that distributed capital across emerging Asian markets.

Average revenue per user trends remain central to financial performance in saturated markets where subscriber growth has plateaued. Telenor has emphasized bundled offerings, enterprise connectivity, and security solutions to sustain pricing power and customer lifetime value.

Cybersecurity Offerings Address Market Demand

Network security capabilities represent a growing revenue opportunity as digital threats proliferate. Telenor’s security infrastructure prevented approximately 2.1 billion digital attacks during the calendar year, including 37.9 million fraudulent calls and 43.5 million malicious text messages. The company’s content filtering systems blocked access to roughly two billion unsafe websites.

These security services provide differentiation in competitive markets while addressing heightened geopolitical tensions and sophisticated cyber threats. The telecommunications provider has positioned network protection as essential infrastructure supporting both commercial clients and public sector agencies.

Defense sector contracts through KNL underscore demand for resilient communications among government customers concerned with national security considerations. This customer segment typically features higher margins and extended contract durations compared to consumer services.

Financial Guidance Signals Measured Optimism

Management established forward-looking expectations for fiscal 2026 that project continued Nordic growth tempered by macroeconomic uncertainty. The company anticipates low single-digit organic growth in Nordic service revenues while targeting mid-single-digit expansion in regional adjusted EBITDA.

Capital expenditure relative to sales should approximate 14 percent for Nordic operations, excluding lease obligations. Group-wide adjusted EBITDA is projected to grow between low and mid-single digits on an organic basis. Free cash flow before M&A activity, excluding dividends from associated companies, should range between NOK 10 billion and NOK 11 billion.

These projections suggest management prioritizes operational efficiency and cash generation over aggressive market share expansion. The guidance framework supports both the dividend policy and share repurchase commitment while preserving investment capacity for network modernization.

Market Implications and Investor Considerations

The share buyback announcement comes amid broader telecommunications sector trends toward shareholder-friendly capital policies as organic growth moderates. Operators with strong balance sheets and predictable cash flows increasingly return excess capital rather than pursuing transformative acquisitions.

Telenor’s strategic pivot toward Nordic concentration aligns with investor preference for transparent operating models and reduced emerging market exposure. The simplified structure should enhance financial predictability and potentially improve valuation multiples relative to more geographically diverse telecommunications conglomerates.

Analysts will monitor execution on the True Corporation sale and subsequent capital allocation decisions. The company’s ability to maintain Nordic market share while defending ARPU levels against competitive pressure represents a key performance indicator for sustainable cash flow generation.