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Telenor ASA (TELNY)
OTHER OTC:TELNY
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Telenor ASA
(OTC:TELNY)
Rating:71Outperform
Price Target:
$17.00
▲(9.25%Upside)
Telenor ASA (TELNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.05B
Dividend Yield5.77%
Average Volume (3M)1.05K
Price to Earnings (P/E)22.6
Beta (1Y)0.10
Revenue Growth-2.94%
EPS Growth30.09%
CountryUS
Employees10,867
SectorCommunication Services
Sector Strength83
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.19
Shares Outstanding1,368,350,000
10 Day Avg. Volume1,009
30 Day Avg. Volume1,047
Financial Highlights & Ratios
PEG Ratio-0.45
Price to Book (P/B)2.92
Price to Sales (P/S)0.00
P/FCF Ratio12.01
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$17.50Price Target Upside12.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Telenor ASA Business Overview & Revenue Model
Company DescriptionTelenor ASA, together with its subsidiaries, operates as a telecommunication company worldwide. Its principal products and services include mobile communication, fixed line communication, and broadcasting services. The company's mobile communication services comprise voice, data, Internet, and content services, as well as customer equipment and messaging. Its fixed line services consist of telephony, Internet and TV, and leased lines, as well as data and managed services; and broadcasting and data communication services through satellite, terrestrial radio, and TV transmission. The company also provides machine-to-machine communication, as well as internet based services and financial services. Telenor ASA was founded in 1855 and is headquartered in Fornebu, Norway.
How the Company Makes MoneyTelenor ASA generates revenue primarily through its telecommunications services, which include mobile voice and data services, fixed-line telephony, and broadband internet services. The company's key revenue streams are its subscription fees from mobile and broadband customers, sales of mobile handsets and accessories, and interconnection fees from other telecom operators. Telenor also benefits from strategic partnerships and joint ventures in various markets, which enhance its service offerings and expand its customer base. Additionally, the company invests in digital services and emerging technologies to drive future growth and maintain its competitive edge in the telecommunications industry.
Telenor ASA Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 5.14%|
Next Earnings Date:Jul 18, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a strong financial performance with significant growth in the Nordics and recognition for network excellence. However, challenges were noted in Bangladesh and Malaysia, with regulatory delays affecting operations in Pakistan.Q1-2025 Updates
Positive Updates
EBITDA Growth in the Nordics
EBITDA growth reached 5.8% in the Nordics, driven by a 3.9% increase in mobile service revenue and a 1% decline in OpEx due to transformational efforts.
Strong Financial Performance
Free cash flow before M&A was NOK 3 billion in Q1, and the financial outlook for the year was reaffirmed, demonstrating solid financial health.
Recognition of Network Excellence
Telenor's Nordic mobile networks were awarded best in Nordics in all 6 categories by OpenSignal, and Ookla recognized Telenor as the fastest mobile and 5G network in Norway.
Positive Development in Pakistan
Telenor Pakistan showed strong performance with a 14% revenue growth and 19% EBITDA growth, despite regulatory challenges.
Negative Updates
Challenges in Bangladesh
The macroeconomic environment in Bangladesh remains challenging, with high inflation leading to an 8% increase in OpEx and an 8% decrease in EBITDA.
Soft Performance in Malaysia
CelcomDigi experienced a soft quarter due to continued tough competition, impacting overall performance.
Regulatory Delays in Pakistan Divestment
Obtaining the necessary regulatory approvals for divestment in Pakistan is taking longer than anticipated, delaying the transaction closure to the second half of 2025.
Impact of VAT Case in Norway
A VAT case in Norway impacted service revenue growth, which would have been 3.1% without the provision related to the case.
Company Guidance
During Telenor's first-quarter earnings call for fiscal year 2025, the company maintained its financial outlook, highlighting key performance metrics. Telenor Nordics achieved an EBITDA growth of 5.8%, with mobile service revenue increasing by 3.9% and a 1% decline in OpEx, despite a challenging VAT case in Norway that impacted growth figures. The group's service revenues rose to NOK 16.1 billion, marking a 2.1% year-on-year increase, while adjusted EPS improved by 4% to NOK 1.96. Telenor generated a free cash flow before M&A of NOK 3 billion, with a CapEx to sales ratio of 12.8%, and ended the quarter with a leverage ratio of 2.2x. In Asia, Telenor Pakistan and True in Thailand contributed positively, although macroeconomic challenges persisted in Bangladesh. The call also addressed Telenor's strategic focus on digital infrastructure, emerging customer needs, and potential in defense and AI sectors.Telenor ASA Financial Statement Overview
Summary
Telenor ASA shows strong financial health with robust cash flows and a solid balance sheet. Despite a decline in revenue and net profit margins, the competitive EBIT and EBITDA margins, along with a healthy equity ratio, offer stability. However, declining profitability metrics may pose future challenges.Income Statement
Telenor ASA shows a steady but declining revenue trend with a TTM revenue of 80,177 million compared to past years. Gross profit margin for TTM is robust at approximately 69.4%, indicating efficient cost management. However, net profit margin has decreased to 12.1% from 23.9% in the previous year, indicating tightened profitability. The EBIT margin at 21.7% and EBITDA margin at 45.5% remain competitive, though they have seen a decline in comparison to previous periods.65
Positive
Balance Sheet
The balance sheet reflects a strong equity position with an equity ratio of 33.6% for TTM. The debt-to-equity ratio is at 1.29, indicating moderate leverage, which is typical in the telecommunications industry. Return on equity (ROE) is healthy at 13.2% for TTM, although it has decreased from previous years, suggesting pressure on generating returns from equity capital.70
Positive
Cash Flow
Telenor ASA's cash flow statement presents stable free cash flow, with a slight decrease in free cash flow growth. The operating cash flow to net income ratio is strong at 3.13 for TTM, demonstrating solid cash generation relative to earnings. The free cash flow to net income ratio stands at 1.84, indicating ample free cash flow available despite a decline from previous years.72
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 80.18B | 79.93B | 80.45B | 98.95B | 110.24B | 122.81B |
| Gross Profit | 55.67B | 62.20B | 61.40B | 72.55B | 81.06B | 93.04B |
| EBITDA | 36.47B | 46.23B | 22.89B | 39.39B | 50.57B | 56.77B |
| Net Income | 9.74B | 19.11B | 13.73B | 13.65B | 11.34B | 17.34B |
Balance Sheet | ||||||
| Total Assets | 219.49B | 229.58B | 218.38B | 239.25B | 225.74B | 256.53B |
| Cash, Cash Equivalents and Short-Term Investments | 11.16B | 10.77B | 20.86B | 10.26B | 15.60B | 20.97B |
| Total Debt | 95.19B | 101.62B | 102.19B | 118.52B | 131.40B | 150.00B |
| Total Liabilities | 139.85B | 147.04B | 147.95B | 174.88B | 194.25B | 212.62B |
| Stockholders Equity | 73.82B | 76.62B | 64.48B | 60.13B | 26.29B | 38.32B |
Cash Flow | ||||||
| Free Cash Flow | 17.93B | 18.10B | 14.39B | 19.92B | 22.82B | 24.82B |
| Operating Cash Flow | 30.49B | 31.48B | 29.12B | 39.22B | 42.27B | 43.82B |
| Investing Cash Flow | -12.69B | -11.49B | -18.30B | -23.14B | -17.23B | -10.56B |
| Financing Cash Flow | -28.76B | -29.39B | -1.53B | -23.98B | -27.90B | -27.58B |
Telenor ASA Technical Analysis
Positive
15.56
Price Trends
15.15
Positive
14.31
Positive
12.98
Positive
Market Momentum
0.11
Positive
59.09
Neutral
53.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TELNY, the sentiment is Positive. The current price of 15.56 is above the 20-day moving average (MA) of 15.40, above the 50-day MA of 15.15, and above the 200-day MA of 12.98, indicating a bullish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 59.09 is Neutral, neither overbought nor oversold. The STOCH value of 53.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TELNY.
Telenor ASA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $16.66B | 11.25 | 16.28% | 6.04% | -5.14% | -7.47% | |
77 Outperform | $18.73B | 18.50 | 7.95% | 1.97% | -5.69% | -0.05% | |
71 Outperform | $21.05B | 22.63 | 12.99% | 5.77% | -2.94% | 30.09% | |
71 Outperform | $53.66B | 32.10 | 8.54% | 3.12% | 0.19% | -49.68% | |
62 Neutral | $40.75B | -1.21 | -12.05% | 3.97% | 2.04% | -69.68% | |
59 Neutral | $29.55B | ― | -0.55% | 4.88% | -2.29% | -182.68% | |
57 Neutral | $26.43B | 9.21 | -7.17% | 4.67% | 0.89% | -494.16% |
* Communication Services Sector Average
Performance Comparison
TELNY
Telenor ASA
15.56
4.67
42.88%
AMX
America Movil
17.37
-0.23
-1.31%
TLK
PT Telekomunikasi Indonesia Tbk
16.49
-1.81
-9.89%
VIV
Telefonica Brasil
11.11
2.69
31.95%
TEF
Telefonica
5.21
1.08
26.15%
VOD
Vodafone
10.84
2.24
26.05%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.