OSLO, Norway — Norwegian telecom giant Telenor ASA (OSE: TEL) reported third-quarter 2025 earnings that came in slightly below market expectations, weighed down by a one-time negative adjustment of 500 million Norwegian crowns ($49.8 million) related to rising 5G deployment costs in Malaysia.

Despite delivering steady growth in its Nordic operations and a rebound in Bangladesh, the company’s earnings were dampened by its exposure to higher network expenses in Asia. Telenor shares fell around 3% in early Oslo trading following the announcement.

Slight Miss on Earnings

Telenor reported adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of 9.54 billion Norwegian crowns for Q3 2025, representing a 5.4% organic increase from a year earlier. However, the figure was just shy of the 9.60 billion crowns expected by analysts in a company-compiled consensus.

While the result reflects solid performance in Telenor’s core Nordic markets, it also highlights persistent challenges in Asia—especially in Malaysia, where surging costs associated with 5G infrastructure weighed on results.

“Based on the latest public information, we make a 0.5 billion crown negative adjustment to our share of results from CelcomDigi this quarter related to its associated 5G network company in Malaysia,”
— Benedicte Schilbred Fasmer, CEO of Telenor ASA

5G-Related Costs in Malaysia

Telenor holds a 33.1% stake in CelcomDigi, Malaysia’s largest mobile operator, alongside Axiata Group. Both firms have faced increasing financial pressure as Malaysia accelerates its rollout of a nationwide 5G network, a key national initiative aimed at enhancing digital connectivity and competitiveness.

The adjustment reflects Telenor’s share of higher operational and capital costs linked to DNB (Digital Nasional Berhad), the government-backed 5G infrastructure company. These costs have temporarily reduced profitability, but analysts say they may position Telenor for long-term gains once Malaysia’s 5G ecosystem matures.

Steady Growth in the Nordics

Despite headwinds in Asia, Telenor’s Nordic operations continued to show resilience, supported by strong customer retention, increased digital adoption, and stable pricing. The company maintained its focus on high-margin services, including fiber broadband, enterprise solutions, and IoT connectivity.

Telenor said it expects 8–9% organic EBITDA growth in the Nordic region for 2025, reflecting solid network performance and growing demand for next-generation connectivity.

Rebound in Bangladesh

In Asia, Telenor’s Grameenphone unit in Bangladesh — where the group holds a majority stake — posted a notable revenue recovery after a year of political unrest and macroeconomic instability.

“Consumers in Bangladesh continue to be cautious following last year’s economic challenges,” CEO Schilbred Fasmer noted, “but we are seeing early signs of renewed momentum.”

Grameenphone recorded its first quarterly revenue growth in over a year, supported by stable customer demand and the normalization of network operations.

2025 Outlook

Looking ahead, Telenor reaffirmed its full-year guidance, expecting:

• 5–6% organic EBITDA growth for the overall group.
• 8–9% EBITDA growth in the Nordic region.
• 2–3% organic growth in Nordic service revenues.

The company said it remains focused on expanding 5G coverage, improving cost efficiency, and exploring strategic partnerships in Asia to balance profitability with growth potential.

With its diversified portfolio across Europe and Asia, Telenor continues to navigate a complex operating environment marked by high capital expenditures, evolving regulations, and currency headwinds.

As of Wednesday, 1 USD equals 10.0431 Norwegian crowns.