Telenor Generates NOK 8.5 Billion in Free Cash Flow, Reaffirms 2026 Targets
Key Facts
Telenor Group reported third-quarter results on October 28, 2026, recording total free cash flow of NOK 8.5 billion and free cash flow before mergers and acquisitions of NOK 4.7 billion. Adjusted EBITDA was NOK 8.8 billion, according to the company statement. Net income attributable to Telenor shareholders was about NOK 9.8 billion. Adjusted earnings per share rose 45% to NOK 2.70. Management reaffirmed its 2026 financial outlook, including a target of nearly NOK 10 billion in free cash flow before mergers and acquisitions, subject to specified conditions.
Analyst estimates published before the results put average revenue at NOK 18,386 million and average adjusted EBITDA at NOK 8,603 million. The company lists other consensus figures of NOK 18,837 million, NOK 18,098 million and NOK 18,426 million for revenue, and NOK 8,811 million, NOK 8,313 million and NOK 8,606 million for adjusted EBITDA. These figures allow the results to be compared with pre-announcement estimates, but the results statement presented here does not specify actual quarterly revenue. It is therefore not possible to determine from these figures alone whether revenue beat or missed expectations. The company presented its operating results alongside a reaffirmation of its full-year targets.
At the market level, Telenor said Norway recorded a clear improvement from the previous quarter, attributing it to cost management. In Sweden, EBITDA grew for the fifteenth consecutive quarter, and the company added 35,000 new mobile customers during the quarter. Finland and Denmark, meanwhile, saw what the company described as stable sequential development. In Asia, Grameenphone maintained profitability as service revenue returned to growth, and Telenor said it demonstrated cost discipline. These developments present a varied picture across markets, from improvement in Norway and continued growth in Sweden to stability in the other two Nordic markets.
The group's 2026 outlook includes flat to slightly negative organic growth in adjusted EBITDA. Its target for free cash flow before mergers and acquisitions is nearly NOK 10 billion, excluding dividends from associates and additional spectrum commitments. For its Nordic telecom operations, the company expects flat to low single-digit organic growth in service revenue and adjusted EBITDA. It also targets capital expenditure of about 14% of sales, excluding leases. The accounting background includes the exclusion of potential prior-period items, including a NOK 0.2 billion VAT provision for Telenor Norway TV for the 2020–2022 period.
On broadband expansion, Telenor said the Bahnhof, GlobalConnect and Enivest deals will add more than 650,000 home broadband customer relationships combined once completed. The expansion comes as the CEO described this as a transitional year for the company on several fronts as it implements its strategy. She said the initiatives aim to improve efficiency, strengthen customer value and increase returns. The fixed-line telecom deals add another dimension to results that also focused on cash flow and operating performance across markets. The information available here did not specify when the deals would be completed.
On shareholder returns, the CEO said the company aims to accelerate its NOK 15 billion share buyback program. Telenor intends to complete the program within two years, rather than the original three-year period. This shortens the target timeline for completing the program by one year. Management announced the plan on October 28, 2026, alongside its third-quarter results. The statement presented here does not include an implementation schedule or details on the pace of purchases.
Before the results announcement, JPMorgan placed Telenor shares on negative catalyst watch and said its estimates were 2% below consensus for EBITDA and 6% below for free cash flow. The bank also cited concerns about weak 2027 trends, linking them to wholesale pressure related to ICE in Norway and the possibility of intensifying competition there. These were pre-results concerns and estimates, not guidance from Telenor. TELNY closed at $13.65 on October 27, according to EL7 data. The available EL7 data did not include the stock's daily trading range.