Telenor trims outlook as Finland and Bangladesh weigh on Q1 profit
First-Quarter Earnings and Outlook
April 28 (Reuters) - Norway's leading telecom operator Telenor on Tuesday reported first-quarter earnings below market expectations and tempered its 2026 targets due to revenue concerns in Finland and Bangladesh.
The company's shares fell 7% by 1125 GMT, among the worst performers on Europe's benchmark Stoxx 600 index.
Financial Performance Overview
Its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) were 8.05 billion Norwegian crowns ($864.6 million), while analysts polled by the company had expected 8.25 billion crowns on average.
Revised Earnings Forecasts
Telenor said the second quarter would be particularly challenging compared to last year's standout quarter, as it lowered the floor of its earnings forecasts.
Nordic Markets Outlook
For the Nordic markets, at the core of Telenor's business, it expects organic growth in a low- to mid-single-digit percentage for its adjusted EBITDA, changed from mid-single-digits before.
Group-Wide Outlook
For the group, it sees the core profit between flat and a low-single-digit organic rise, down from low- to mid-single-digit growth in its previous forecast.
CEO Statement and Strategic Direction
"We are delivering on our commitment to simplify the Group portfolio and becoming a more Nordic-centric company over time, while at the same time enhancing our financial strength and increasing capital returns to shareholders," CEO Benedicte Schilbred Fasmer said in a statement.
Regional Performance Highlights
Finland: DNA's Revenue Challenges
Telenor said that while Norway and Sweden performed well in the first quarter, performance of its Finnish operator DNA was weighed down by intense price competition at the end of 2025, which continued to impact revenue streams in early 2026.
Bangladesh: Macroeconomic Headwinds
Telenor's operations in Bangladesh, meanwhile, have been affected by the country's weak macroeconomic conditions.
The company said Bangladesh continued to face tough headwinds, as the country's energy-supply vulnerabilities overshadowed the positive effects of the recent election.
Grameenphone's Growth Turns Negative
Growth in its majority-owned Bangladesh joint venture Grameenphone turned negative as the energy crisis reduced consumer spending, Telenor said.
($1 = 9.3103 Norwegian crowns)
(Reporting by Elviira Luoma, editing by Milla Nissi-Prussak)
