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Telenor ASA (TELNY)
OTHER OTC:TELNY
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Telenor ASA
(OTC:TELNY)
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Rating:65Neutral
Price Target:
$16.50
â–¼(-1.26% Downside)
Telenor ASA's overall stock score reflects a mixed financial performance with strong gross margins but declining net margins and high leverage. The technical analysis suggests a neutral trend, while the valuation is fair with a good dividend yield. The earnings call provides a positive outlook, particularly in the Nordics, which significantly boosts the score.
Telenor ASA (TELNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.85B
Dividend Yield5.2%
Average Volume (3M)1.68K
Price to Earnings (P/E)22.2
Beta (1Y)0.02
Revenue Growth-0.93%
EPS Growth17.52%
CountryUS
Employees10,867
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.22
Shares Outstanding1,368,350,000
10 Day Avg. Volume0
30 Day Avg. Volume1,680
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 Cap1.35
Enterprise Value/Revenue0.38
Enterprise Value/Gross Profit0.49
Enterprise Value/Ebitda0.81
Forecast
1Y Price Target
$16.50Price Target Upside-1.26% Downside
Rating ConsensusHold
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 generates revenue primarily through its mobile and fixed-line telecommunications services. Key revenue streams include subscription fees from mobile and broadband services, usage-based charges, and value-added services such as mobile payments and digital content. The company also earns income from partnerships and collaborations with various technology and content providers, enhancing its service offerings. Additionally, Telenor benefits from economies of scale and operational efficiencies, which help maintain healthy margins. The company has made strategic investments in emerging markets, contributing to its revenue growth through increased customer acquisition and service diversification.
Telenor ASA Earnings Call Summary
Earnings Call Date:Jul 18, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
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 shows a strong financial position with robust cash flows and a solid balance sheet. The company faces declining revenue and profit margins, but maintains competitive margins and a healthy equity ratio. Financial stability is supported by moderate leverage and strong cash generation.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.60
Neutral
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.58
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 80.56B | 79.93B | 80.45B | 98.95B | 110.24B | 122.81B |
| Gross Profit | 62.97B | 62.20B | 61.40B | 72.55B | 81.06B | 93.04B |
| EBITDA | 38.12B | 46.23B | 22.89B | 39.39B | 50.57B | 56.77B |
| Net Income | 10.93B | 18.34B | 13.73B | 13.65B | 11.34B | 17.34B |
Balance Sheet | ||||||
| Total Assets | 219.33B | 229.58B | 218.38B | 239.25B | 225.74B | 256.53B |
| Cash, Cash Equivalents and Short-Term Investments | 7.46B | 10.77B | 20.86B | 10.26B | 15.60B | 20.97B |
| Total Debt | 100.04B | 101.62B | 102.19B | 118.52B | 131.40B | 150.00B |
| Total Liabilities | 149.50B | 147.04B | 147.95B | 174.88B | 194.25B | 212.62B |
| Stockholders Equity | 64.57B | 76.62B | 64.48B | 60.13B | 26.29B | 38.32B |
Cash Flow | ||||||
| Free Cash Flow | 17.11B | 18.10B | 14.39B | 19.92B | 22.82B | 24.82B |
| Operating Cash Flow | 29.48B | 31.48B | 29.12B | 39.22B | 42.27B | 43.82B |
| Investing Cash Flow | -13.07B | -11.49B | -18.30B | -23.14B | -17.23B | -10.56B |
| Financing Cash Flow | -24.07B | -29.39B | -1.53B | -23.98B | -27.90B | -27.58B |
Telenor ASA Technical Analysis
Positive
16.71
Price Trends
16.20
Positive
15.66
Positive
14.02
Positive
Market Momentum
0.23
Positive
51.68
Neutral
17.86
Positive
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 16.71 is below the 20-day moving average (MA) of 16.81, above the 50-day MA of 16.20, and above the 200-day MA of 14.02, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 51.68 is Neutral, neither overbought nor oversold. The STOCH value of 17.86 is Positive, 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | 19.22B | 13.69 | 17.30% | 6.59% | -5.13% | -5.90% | |
72 Outperform | 20.24B | 20.20 | 7.96% | 4.22% | -6.51% | -0.21% | |
68 Neutral | 61.26B | 21.61 | 11.57% | 2.59% | -0.64% | 56.92% | |
65 Neutral | $22.85B | 22.22 | 16.46% | 5.20% | -0.93% | 17.52% | |
60 Neutral | 27.63B | -6.38 | -7.90% | 4.34% | 0.89% | -494.16% | |
56 Neutral | 29.89B | -11.89 | -13.79% | 6.79% | -4.73% | -251.31% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
Performance Comparison
TELNY
Telenor ASA
16.71
4.30
34.65%
TLK
PT Telekomunikasi Indonesia Tbk
19.52
-0.18
-0.91%
SKM
Sk Telecom
21.86
-2.27
-9.41%
VIV
Telefonica Brasil
12.61
3.20
34.01%
TEF
Telefonica
5.25
0.63
13.64%
VOD
Vodafone
11.41
1.78
18.48%
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.