Telenor reported a 1.4 percent decline in revenue to NOK 18,197 million in Q1 2026 from NOK 18,457 million in Q1 2025, while service revenues fell 1.3 percent to NOK 14,844 million from NOK 15,040 million. Despite the topline pressure, the telecom operator continued to benefit from ARPU growth and disciplined cost management across key markets.
“Our financial position is strong following our divestments. A leverage ratio of only 1.2x leaves room both for incremental shareholder returns and disciplined value-accretive investments in core Nordic markets,” Benedicte Schilbred Fasmer, President and CEO of Telenor Group, said.
Operating expenses declined 2.4 percent to NOK 6,150 million compared to NOK 6,301 million, supported by efficiency gains from digital transformation in the Nordics, including customer service improvements in Sweden and decommissioning of legacy networks. Higher salaries and amortisation costs were offset by lower operations and maintenance spending, while cost control measures in Bangladesh helped cushion revenue decline.
Capital expenditure excluding leases dropped 7.4 percent to NOK 2,281 million from NOK 2,463 million, with capex-to-sales improving to 12.5 percent, down 0.8 percentage points. Investments were focused on mobile network modernisation, fibre rollout, and IT transformation, reflecting a maturing 5G cycle nearing full population coverage. Nordic capex stood at NOK 1,814 million with a 12.6 percent ratio, while Asia’s capex-to-sales fell to 9.5 percent, down 3.0 percentage points.
In the Nordics, mobile service revenues rose 2.0 percent, or 2.7 percent excluding IoT transfers, driven by ARPU gains and subscriber growth in Sweden. Fixed revenues increased 1.3 percent due to fibre expansion.
Telenor Norway saw its mobile base decline by 19,000, but ARPU increased 4 percent, with fibre subscriptions rising by 3,000.
Telenor Sweden delivered strong momentum, with a 3 percent rise in mobile subscribers and 2 percent ARPU growth, resulting in 4.6 percent mobile revenue growth, though fibre subscriptions fell by 13,000 and fixed revenues dropped 6.3 percent.
Telenor Denmark added 8,000 mobile subscribers and 4,000 fibre customers, with ARPU rising 2 percent and mobile revenues growing 3.1 percent, while fixed revenues declined 10.0 percent.
In Finland, DNA reported a decline of 19,000 mobile subscribers, modest 0.6 percent growth in mobile service revenues, and a 4 percent drop in fixed broadband ARPU due to mix changes, despite fibre additions of 5,000.
In Asia, Grameenphone’s service revenues declined 1.9 percent amid macroeconomic pressure and intense data competition, with adjusted EBITDA falling 1.7 percent despite cost control efforts.
Telenor’s Q1 2026 performance highlights a shift toward efficiency, ARPU-led growth, and disciplined capex, while digital transformation and network investments continue to support long-term competitiveness across regions.
BABURAJAN KIZHAKEDATH
