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Telenor ASA (ADR) (TELNY)
OTHER OTC:TELNY
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Telenor ASA
(OTC:TELNY)
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Rating:66Neutral
Price Target:
$15.50
â–²(7.49% Upside)
Telenor ASA's overall stock score reflects a stable but challenged financial performance, with strong profitability but declining revenue and cash flow growth. The technical analysis suggests bearish momentum, while the valuation is reasonable with a good dividend yield. The earnings call highlighted strong performance in the Nordics and strategic partnerships, though challenges in Asia remain a concern.
Positive Factors
Nordics Performance
Strong performance in the Nordics, particularly in Norway, indicates robust market position and operational efficiency, supporting long-term growth.
Strategic Partnership
The Vodafone partnership enhances competitiveness and cost efficiency, potentially leading to sustainable growth and market expansion.
Free Cash Flow Growth
Significant free cash flow growth indicates strong cash generation ability, enhancing financial flexibility for future investments.
Negative Factors
Declining Revenue Growth
Declining revenue growth poses a challenge to maintaining market share and profitability, potentially impacting long-term business sustainability.
High Leverage
High leverage can strain financial resources and limit strategic flexibility, posing risks to long-term financial health and stability.
Challenges in Asia
Macroeconomic and competitive challenges in Asia could hinder growth and profitability, affecting Telenor's overall performance in key markets.
Telenor ASA (TELNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$19.52B
Dividend Yield5.27%
Average Volume (3M)5.07K
Price to Earnings (P/E)18.9
Beta (1Y)0.03
Revenue Growth1.54%
EPS Growth10.58%
CountryUS
Employees10,867
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.19
Shares Outstanding1,368,350,000
10 Day Avg. Volume0
30 Day Avg. Volume5,072
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)2.28
Price to Sales (P/S)2.18
P/FCF Ratio9.65
Enterprise Value/Market Cap1.62
Enterprise Value/Revenue0.51
Enterprise Value/Gross Profit0.66
Enterprise Value/Ebitda1.09
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Telenor ASA Business Overview & Revenue Model
Company DescriptionTelenor ASA (TELNY) is a leading telecommunications company headquartered in Norway, operating in multiple markets across Scandinavia, Eastern Europe, and Asia. The company provides a wide range of services including mobile and fixed-line telecommunications, data services, and digital solutions. Telenor is known for its focus on innovation and customer experience, offering products such as mobile voice and broadband, internet of things (IoT) services, and digital financial services.
How the Company Makes MoneyTelenor ASA generates revenue primarily through its telecommunications services, which include voice, data, and broadband services for both individual and corporate customers. The company operates on a subscription-based model where customers pay monthly fees for mobile and broadband services. Additionally, Telenor earns revenue from value-added services such as digital content, IoT solutions, and mobile financial services such as e-wallets and payment processing. Key revenue streams include mobile services, which account for a significant portion of its earnings, and fixed-line services. Telenor also engages in strategic partnerships with technology providers and local businesses to enhance its service offerings and expand its market reach, contributing to its overall revenue growth.
Telenor ASA Earnings Call Summary
Earnings Call Date:Jul 18, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 06, 2026
Earnings Call Sentiment Positive
Telenor's earnings call highlighted strong performance in the Nordics with significant earnings growth and strategic M&A activities. However, challenges in Pakistan and Bangladesh, along with increased CapEx and cash flow concerns, present notable issues. Overall, the positive achievements in the Nordics and Asia outweigh these challenges.Q2-2025 Updates
Positive Updates
Exceptional Performance in the Nordics
The Nordics showed a remarkable 12.5% EBITDA growth with Norway achieving a 16.1% increase, which is the highest level seen in over a decade. This growth is attributed to a strategic focus on operational efficiencies and a strong commercial strategy.
Significant EPS Growth
Adjusted EPS grew by 33% in the quarter, driven by strong EBITDA performance and increased contributions from associates and joint ventures.
Successful M&A Activity
Telenor announced the acquisition of GlobalConnect's consumer fiber business in Norway, increasing their fiber market share from 22% to 29%.
Positive Developments in Asia
Despite challenging environments, Telenor's operations in Asia, particularly in Thailand and Malaysia, showed positive performance, with True Corp reporting a positive net profit for the first time.
Negative Updates
Challenges in Pakistan
Telenor Pakistan faced challenges with tax authorities actively pursuing disputed tax claims, resulting in a significant tax payment that impacted cash flow.
Struggles in Bangladesh
Despite commercial and cost efficiency efforts, the anticipated recovery in Bangladesh is now expected post-2026 elections.
Increased CapEx and Working Capital Concerns
Free cash flow was affected by higher CapEx related to new fiber investments and negative working capital developments.
Company Guidance
In the recent Telenor call, the company delivered robust second-quarter results, highlighting several key metrics. The Nordics experienced a significant EBITDA growth of 12.5%, driven by a 16.1% surge in Norway, marking a decade-high performance. This was attributed to a 3.7% rise in service revenue, supported by ARPA growth and positive subscriber trends across Sweden, Denmark, and Finland. Adjusted EPS saw a 33% increase, reaching NOK 2.22, while service revenues hit NOK 16.5 billion, up 2.9% year-over-year. The group's CapEx to sales ratio was 13.5%, with a leverage ratio of 2.4x. Free cash flow before M&A totaled NOK 1.6 billion for the quarter. Telenor reiterated its top-line, CapEx, and free cash flow outlook for 2025, revising the EBITDA guidance upward to reflect high single-digit growth in the Nordics and mid-single-digit growth for the group.Telenor ASA Financial Statement Overview
Summary
Telenor ASA's financial performance shows a mix of strengths and weaknesses. The company maintains strong profitability margins, but declining revenue and cash flow growth rates raise concerns about future growth prospects. High leverage remains a risk, though the company effectively utilizes its equity. Overall, while the company is stable, it faces challenges in sustaining growth and managing leverage.Income Statement
Telenor ASA's income statement shows a mixed performance. The TTM data indicates a significant decline in revenue growth rate by 22.38%, which is concerning. Gross profit margin remains strong at 67.04%, but net profit margin has decreased to 13.21% from 22.94% in the previous year. EBIT and EBITDA margins have also declined, indicating reduced operational efficiency. Overall, while profitability remains decent, the declining revenue and margins suggest challenges in maintaining growth.Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 1.49 in the TTM period, reflecting significant leverage, though it has improved from previous years. Return on equity is healthy at 15.18%, indicating effective use of equity to generate profits. The equity ratio stands at 30.25%, suggesting a moderate reliance on equity financing. While leverage remains a concern, the company shows stability in equity utilization.Cash Flow
Cash flow analysis indicates a decline in free cash flow growth by 22.90% in the TTM period, highlighting potential liquidity challenges. The operating cash flow to net income ratio is 0.57, suggesting moderate cash generation efficiency. The free cash flow to net income ratio is 0.60, indicating that a significant portion of net income is converted into free cash flow. Despite the decline in growth, cash flow generation remains relatively stable.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 62.53B | 79.93B | 80.45B | 98.95B | 110.24B | 122.81B |
| Gross Profit | 48.26B | 62.20B | 61.40B | 72.55B | 81.06B | 93.04B |
| EBITDA | 29.05B | 46.23B | 22.89B | 39.39B | 39.45B | 56.77B |
| Net Income | 7.95B | 18.34B | 13.73B | 13.65B | 11.34B | 17.34B |
Balance Sheet | ||||||
| Total Assets | 22.19B | 229.58B | 218.38B | 239.25B | 225.74B | 256.53B |
| Cash, Cash Equivalents and Short-Term Investments | 1.16B | 10.77B | 20.86B | 10.26B | 15.60B | 20.97B |
| Total Debt | 9.97B | 101.62B | 102.19B | 118.52B | 131.40B | 150.00B |
| Total Liabilities | 14.99B | 147.04B | 147.95B | 174.88B | 194.25B | 212.62B |
| Stockholders Equity | 6.71B | 76.62B | 64.48B | 60.13B | 26.29B | 38.32B |
Cash Flow | ||||||
| Free Cash Flow | 13.19B | 18.10B | 14.39B | 19.92B | 22.82B | 24.82B |
| Operating Cash Flow | 23.09B | 31.48B | 29.12B | 39.22B | 42.27B | 43.82B |
| Investing Cash Flow | -10.48B | -11.49B | -18.30B | -23.14B | -17.23B | -10.56B |
| Financing Cash Flow | -22.88B | -29.39B | -1.53B | -23.98B | -27.90B | -27.58B |
Telenor ASA Technical Analysis
Positive
14.42
Price Trends
14.45
Positive
15.41
Negative
15.04
Negative
Market Momentum
-0.01
Negative
51.13
Neutral
34.34
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 14.42 is above the 20-day moving average (MA) of 14.34, below the 50-day MA of 14.45, and below the 200-day MA of 15.04, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 51.13 is Neutral, neither overbought nor oversold. The STOCH value of 34.34 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $19.85B | 18.85 | 8.36% | 5.03% | -3.16% | 4.70% | |
75 Outperform | $20.29B | 15.39 | 15.54% | 6.14% | -5.21% | -7.45% | |
66 Neutral | $19.52B | 18.85 | 15.01% | 5.27% | 1.54% | 10.58% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $7.67B | 19.68 | 4.72% | 5.02% | -8.16% | -52.52% | |
58 Neutral | $31.85B | -7.55 | -7.08% | 3.77% | 19.67% | -278.51% | |
45 Neutral | $22.45B | -10.25 | -0.70% | 7.47% | -5.49% | -75.51% |
* Communication Services Sector Average
TELNY
Telenor ASA
14.46
3.76
35.12%
TLK
PT Telekomunikasi Indonesia Tbk
21.40
5.85
37.62%
SKM
Sk Telecom
20.48
-0.98
-4.57%
VIV
Telefonica Brasil
12.34
5.00
68.12%
TEF
Telefonica
3.96
0.23
6.14%
VOD
Vodafone
13.82
5.98
76.19%
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.