Telenor continues solid performance in the Nordics, while facing headwinds in Asia

Core Insights - Telenor reported a solid third-quarter performance with service revenues growing by 2.7% year-over-year, adjusted EBITDA increasing by 5.4%, and free cash flow before M&A rising by 50% year-on-year, leading to a tightened outlook for 2025 [1][2]. Financial Performance - Adjusted EBITDA for the year to date reached NOK 27.5 billion, while free cash flow before M&A was NOK 8.8 billion [2]. - In Q3, service revenues amounted to NOK 16.3 billion, adjusted EBITDA was NOK 9.5 billion, and free cash flow before M&A was NOK 4.2 billion [11]. Regional Performance - The Nordic business showed robust results with 2.1% organic growth in service revenues and an 8.0% increase in adjusted EBITDA, driven by solid service revenue gains and effective cost reductions [3]. - In Asia, adjusted EBITDA rose by 4.1%, with Grameenphone returning to top-line growth despite challenging market conditions, and Telenor Pakistan experiencing a 17% increase in EBITDA due to strong service revenue growth [4]. Strategic Developments - Telenor and Vodafone formed a global strategic procurement partnership to enhance supply chain resilience, leveraging a combined annual spend of over EUR 26 billion [8]. - The acquisition of GlobalConnect's consumer business for NOK 6.0 billion will increase Telenor's market share from 22% to 29%, adding approximately 140,000 fibre customers [9]. Outlook for 2025 - The company expects 2-3% organic growth in Nordic service revenues and 8-9% organic growth in adjusted EBITDA for the Nordics, with free cash flow before M&A projected at around NOK 13 billion [12][13].