Steady course in turbulent times

06 May 2025 07:00 CEST

Telenor Group increased its revenues during a quarter of global economic
instability due to fast-changing tariffs and geopolitical turmoil. This
unpredictability has also created new business opportunities in the Nordics.

First quarter highlights:
· Service revenues of NOK 16.1 billion in the quarter
· Adjusted EBITDA of NOK 8.6 billion in the quarter
· Free cash flow before M&A of NOK 3.0 billion in the quarter

During the first quarter, Telenor delivered year-over-year organic growth in
service revenues of 2.1 percent, and organic EBITDA growth of 2.0 percent.

- We live in turbulent times. The global economy and world trade has been thrown
into disarray by unpredictable and fast-changing tariffs. So far, our business
is not directly affected, but we monitor how this uncertainty may affect Telenor
and our customers, both operationally and financially, says CEO Benedicte
Schilbred Fasmer.

Increasing revenues in the Nordics
In the Nordics, Telenor delivered 2.3 percent organic growth in service revenues
in the quarter, while organic EBITDA growth ended at 5.8 percent due to
efficiency initiatives.

- We are pleased with our performance in the Nordics. Competition remains
strong, but we continue to grow revenues above inflation on an organic basis. In
Norway our new customer-friendly handset solution ('Splitt') and fraud-call
alerts have been well received by customers. Finland remained our top-performing
market, generating 9 per cent adjusted EBITDA growth in the quarter, says
Fasmer.

In Bangladesh, Grameenphone is showing a quarter-on-quarter growth improvement
in the wake of last summer’s unrest. Telenor Pakistan delivers strong results
amid improving market conditions.

Opportunities to create value
Although geopolitics turbulence remains a concern, Telenor also sees that this
drives opportunities for sovereign and regional solutions.

Recently, Telenor Amp-owned KNL secured a ten-year contract to deliver
cutting-edge military communications technology to the defence forces of Sweden
and Finland.

Telenor AI Factory is Norway's first fully integrated platform for generative
artificial intelligence. The factory leverages NVIDIA's full-stack AI platform
and will process

Norwegian data on Norwegian soil. This sovereign AI initiative was launched last
autumn and has been well received by customers. The recent geopolitical concern
has led to further interest from customers and Telenor is now preparing to scale
up with a four-fold increase in GPU capacity towards the end of the year.

- We continue to build on the strong trust of our customers and the resilience
of our digital infrastructure. It is also important to stand up for our common
values. We have certainly done this in the first quarter. I am proud that we
continue to see opportunities and create value even in more challenging times.

Strong cash flow
Free cash flow before M&A and potential items reached NOK 3.0 billion in the
first quarter. The strong cash flow is primarily driven by strong EBITDA and
favorable timing effects from working capital and capex payments.

Telenor's ambition for the current year is a free cash flow of around NOK 13
billion, before M&A.

Financial outlook for 2025:
• Low single-digit organic growth in Nordic service revenues
• Mid-single-digit organic growth in EBITDA in the Nordics
• For the Nordic business, capex excl. leases are expected to account for around
14% of revenues
• Low-to-mid single-digit organic growth in the Group's EBITDA
• Free cash flow of around NOK 13 billion before M&A

For further questions, please contact:
Thomas Midteide, Chief Communications Officer, mobile +47 96 23 20 17
Frank Maaø, SVP Capital Markets and Investor Relations, mobile +47 91 67 40 45

More information:
Access the news on Oslo Bors NewsWeb site

645335_Presentation Q1 2025.pdf
645335_Report Q1 2025.pdf