Telenor reported a decline in financial performance for the second quarter of 2026, with service revenues decreasing by 0.7% and adjusted EBITDA falling by 4.8%. The company revised its financial outlook for the year downward, citing competitive pressures in Norway and Bangladesh, along with the impact of transformation costs. Despite the softer earnings, the company highlighted strategic progress in its Nordic broadband expansion and defense communications, maintaining its commitment to shareholder returns through dividends and share buybacks.

Financial Performance Overview

The following table summarizes Telenor's quarterly performance for Q2 2026:

The reported figures were affected by specific items, including a provision related to a VAT dispute for TV news channels in Norway dating back to 2020-2022. On an underlying comparable basis, service revenues increased by 0.3% while EBITDA declined by 2.3%. The company noted that organic service revenue growth was slightly positive at 0.2%.

Regional Performance and Strategic Developments

Performance across the Nordics was mixed. Norway faced a demanding mobile market with tough competition, resulting in a 2% decline in underlying adjusted EBITDA. However, Sweden and Denmark showed positive momentum, with Sweden reporting a 5.2% EBITDA growth driven by fixed transformation and subscriber gains. In Asia, Bangladesh continued to face macroeconomic headwinds, with service revenues declining by 3.2% and EBITDA down 6%.

Strategically, Telenor advanced its Nordic-centric focus. The company announced the acquisition of Bahnhof in Sweden, positioning it as the second largest fixed telecom provider in the market with an expected market share increase from 15% to 27%. Additionally, the GlobalConnect transaction was approved by the Competition Authority. The company also secured significant defense contracts, including a 3-year agreement with the Norwegian Armed Forces estimated at $750 million.

Revised Outlook and Shareholder Returns

Due to the performance in the first half of the year and market developments, Telenor updated its financial outlook for 2026. For Telenor Nordics, the company now expects organic growth in service revenues and adjusted EBITDA to be flat to low single digit. At the group level, the outlook is for flat to slightly negative organic growth in adjusted EBITDA.

Management affirmed its commitment to shareholder returns. The company generated a net income of 2.5 billion and maintained a strong balance sheet with leverage at 1.4 times. A 15 billion buyback program is underway, with 2.9 million shares repurchased for 0.4 billion kroners in June.

Telenor has agreed to acquire Enivest, one of the leading fibre operators in Western Norway, in a transaction valued at NOK 2.5 billion. The acquisition includes Enivest's fibre network and approximately 28,000 customers, as well as a 34% stake in Årdalsnett, which has around 3,000 customers. This move strengthens Telenor's position in an attractive regional market and advances its strategy to build scale in the Norwegian broadband market.

Benedicte Schilbred Fasmer, President and CEO of Telenor, described the acquisition as an important strategic step. She stated that Telenor will continue to invest in robust digital infrastructure in Norway and has clear ambitions to grow within broadband, including through acquisitions. Fasmer noted that Enivest is a well-run company with a strong local presence that fits well with Telenor's long-term strategy.

Financial and Operational Details

In 2025, Enivest reported revenues of approximately NOK 290 million and EBITDA of around NOK 130 million. For 2026, EBITDA growth of around 12% is expected. The company has largely completed its fibre rollout, which is expected to pave the way for increased cash flow going forward.

The transaction implies an EV/EBITDA multiple of approximately 17x based on expected 2026 EBITDA, reducing to around 10x including fully realized synergies. Telenor plans to invest approximately NOK 150 million over time in integration and network upgrades.

Strategic Benefits and Integration

Through the acquisition, Enivest's customers will gain access to a broader range of services, including Telenor's digital security and entertainment offerings. Enivest will continue to operate as a separate company, with the current management team unchanged. Birgitte Engebretsen, CEO of Telenor Norway, highlighted that combining Telenor's experience in operating fibre networks at scale with Enivest's expertise creates a strong foundation for further development.

Enivest has around 50 employees based in Førde (head office), Sogndal, Florø, Stryn, and Sunnhordland. Since its establishment in 2001, the company has grown to become one of the largest providers of fibre communications in Western Norway. Nandor Helgheim, CEO of Enivest, expressed that the company has built a solid platform for further growth and is well positioned to continue developing under Telenor's ownership.

Shareholder and Regulatory Information

The transaction is subject to approval by the Norwegian Competition Authority and is expected to close in 2026. The shareholders of Enivest include Eviny (55.8%), SFE (40.3%), Tussa IKT (1.7%), Nandor Helgheim (1.4%), Sunnfjord Municipality (0.7%), and Hyllestad Municipality (0.1%).