Telenor ASA

Solid Q3 operating + cash performance; leverage low - Group service revenue: +1.6% y/y to NOK 14.8bn (organic, currency-neutral basis as stated). - Adjusted EBITDA: +1.5% to NOK 8.8bn. - Strong cash generation: Free cash flow before M&A NOK 4.7bn (+13% y/y). - Adjusted EPS: NOK 2.70 (+45% y/y). - Balance sheet: Net leverage 1.2x (below target range 1.8–2.3x), giving flexibility for shareholder returns + investments. - Surprising/positive driver: Reported net income boosted by a large non-recurring item (see below).

Key “one-off” accounting gain from Connection sale drove headline profit - Completed sale of 50% of Telenor Connection in Sept; ~NOK 7bn gain. - This lifted reported unadjusted EBITDA and net income; net income attributable to shareholders: NOK 9.8bn. - Management emphasized using adjusted earnings for comparability; excluding adjustment items, net income NOK 3.7bn.

Capital allocation / shareholders: accelerated buyback + dividend paid; M&A underway - Share buyback acceleration: program now aimed to be completed within 2 years (from 3), subject to stock liquidity; NOK 15bn total buyback. - Progress: by 23 Oct, repurchased NOK 2.8bn (~77%) of the first-year tranche. - Dividend: paid second tranche of NOK 6.4bn (yesterday, per call). - M&A commitments (Nordic fixed broadband scale): GlobalConnect, Enivest, Bahnhof announced/underway; total ~NOK 16bn. - Expected to add >650,000 consumer broadband relationships and strengthen positions in Norway + Sweden. - Opportunity: acquisitions plus transformation expected to create meaningful EBITDA contribution post integration.