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Telenor ASA (TELNY)
OTHER OTC:TELNY
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Telenor ASA
(OTC:TELNY)
Rating:77Outperform
Price Target:
$17.50
▲(14.23%Upside)
Telenor ASA (TELNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.95B
Dividend Yield5.83%
Average Volume (3M)18.27K
Price to Earnings (P/E)22.5
Beta (1Y)0.13
Revenue Growth-2.94%
EPS Growth30.09%
CountryUS
Employees10,867
SectorCommunication Services
Sector Strength88
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.19
Shares Outstanding1,368,350,000
10 Day Avg. Volume0
30 Day Avg. Volume18,271
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)2.59
Price to Sales (P/S)0.00
P/FCF Ratio10.97
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 Upside14.23% 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 through multiple streams, primarily from its mobile and fixed-line communication services offered to both individual and business customers. The company earns from subscription fees for voice, data, and broadband services, as well as from the sale of mobile devices. In addition to these core services, Telenor also makes money through its digital services, which include content distribution, financial services, and IoT solutions. The company has strategic partnerships with technology providers and local operators to enhance its service offerings and expand its market presence. Roaming charges and interconnection fees also contribute to its revenue, along with its active participation in emerging markets where mobile penetration is rapidly increasing.
Telenor ASA Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 3.51%|
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
Overall, Telenor ASA presents a robust financial position with strong profitability and efficient cash flow management. Despite a slight decline in revenue, the company maintains healthy margins and a stable balance sheet, offering a solid foundation for future growth and resilience in the telecommunications industry.Income Statement
Telenor ASA shows strong profitability with a stable gross profit margin of 77.8% for 2024 and a net profit margin of 23.9%. The company experienced a slight revenue decline of 0.65% from 2023 to 2024, but EBIT and EBITDA margins remain healthy at 23.3% and 57.8%, respectively. Overall, the income statement indicates solid performance with room for growth in revenue.75
Positive
Balance Sheet
The balance sheet reveals a manageable debt-to-equity ratio of 1.33, showing a stable leverage position. The return on equity is competitive at 24.9%, and the equity ratio stands at 33.4%, indicating a healthy balance between debt and equity financing. The company maintains a solid equity base, though slightly reduced compared to past years.70
Positive
Cash Flow
Telenor ASA demonstrates strong cash flow management with an impressive free cash flow growth rate of 25.7% and a high operating cash flow to net income ratio of 1.65. The free cash flow to net income ratio of 0.95 also highlights efficient cash generation capabilities, supporting future investments and debt servicing.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 79.93B | 80.45B | 98.95B | 110.24B | 122.81B | Gross Profit |
| 62.20B | 61.40B | 72.55B | 81.06B | 93.04B | EBIT |
| 18.62B | 16.96B | 14.06B | 21.51B | 29.50B | EBITDA |
| 46.23B | 22.89B | 39.39B | 50.57B | 56.77B | Net Income Common Stockholders |
| 19.11B | 13.73B | 13.65B | 11.34B | 17.34B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 11.99B | 20.86B | 10.26B | 15.60B | 20.97B | Total Assets |
| 229.58B | 218.38B | 239.25B | 225.74B | 256.53B | Total Debt |
| 101.62B | 102.19B | 118.52B | 131.40B | 150.00B | Net Debt |
| 91.24B | 82.64B | 108.59B | 116.17B | 129.42B | Total Liabilities |
| 147.04B | 147.95B | 174.88B | 194.25B | 212.62B | Stockholders Equity |
| 76.62B | 64.48B | 60.13B | 26.29B | 38.32B |
| Cash Flow | Free Cash Flow | |||
| 18.10B | 14.39B | 19.92B | 22.82B | 24.82B | Operating Cash Flow |
| 31.48B | 29.12B | 39.22B | 42.27B | 43.82B | Investing Cash Flow |
| -11.49B | -18.30B | -23.14B | -17.23B | -10.56B | Financing Cash Flow |
| -29.39B | -1.53B | -23.98B | -27.90B | -27.58B |
Telenor ASA Technical Analysis
Positive
15.32
Price Trends
14.60
Positive
13.77
Positive
12.72
Positive
Market Momentum
0.19
Positive
56.20
Neutral
43.74
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 15.32 is above the 20-day moving average (MA) of 15.31, above the 50-day MA of 14.60, and above the 200-day MA of 12.72, indicating a bullish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 56.20 is Neutral, neither overbought nor oversold. The STOCH value of 43.74 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $16.65B | 11.38 | 16.28% | 6.05% | -5.14% | -7.47% | |
78 Outperform | $17.86B | 17.67 | 7.95% | 1.95% | -5.69% | -0.05% | |
77 Outperform | $20.95B | 22.53 | 12.99% | 5.83% | -2.94% | 30.09% | |
71 Outperform | $52.52B | 31.53 | 8.54% | 5.69% | 0.19% | -49.68% | |
64 Neutral | $29.40B | ― | -0.55% | 4.49% | 1.18% | ― | |
61 Neutral | $14.68B | 5.92 | -3.83% | 7.51% | 2.79% | -33.07% | |
57 Neutral | $25.05B | 9.21 | -7.17% | 5.04% | 0.89% | -494.16% |
* Communication Services Sector Average
Performance Comparison
TELNY
Telenor ASA
15.32
4.16
37.28%
AMX
America Movil
17.21
0.94
5.78%
TLK
PT Telekomunikasi Indonesia Tbk
16.64
0.36
2.21%
VIV
Telefonica Brasil
10.77
3.06
39.69%
TEF
Telefonica
5.22
1.16
28.57%
VOD
Vodafone
10.04
1.38
15.94%
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.