TEL: Strategic momentum in challenging quarter

Telenor made important strategic progress in the second quarter, strengthening
its Nordic position, expanding its broadband footprint and securing important
contracts within defence and mission-critical communications. The financial
performance was affected by particularly tough year-on-year comparables, the
timing of commercial initiatives, robustification and transformation costs, and
a continued challenging macroeconomic environment in Bangladesh.

"2026 is a transition year for Telenor on several fronts as we deliver on our
strategy. While the quarter was affected by several short-term factors, we are
executing initiatives that will improve efficiency, strengthen customer value
and increase returns over time," says CEO Benedicte Schilbred Fasmer.

Second quarter highlights:

o	Service revenues of NOK 14.679 billion.
o	Adjusted EBITDA of NOK 7.987 billion
o	Free cash flow before M&A of NOK 1.815 billion.
o	Total free cash flow of NOK 2.0 billion.
o	
Service revenues declined by 0.7 per cent, while EBITDA declined by 4.8 per
cent, both organically. Free cash flow before M&A was NOK 1.8 billion. The
results reflect particularly tough year-on-year comparables, timing of
commercial initiatives, phasing and step-up of robustification and
transformation costs, softer market conditions in Norway, modest improvements in
Finland, and challenging macro conditions in Bangladesh. Telenor also made a
provision in Norway for the dispute on VAT for TV news channels, negatively
affecting service revenues and adjusted EBITDA by NOK 135 million and NOK 162
million, respectively.

A transition year to deliver on strategy

Telenor is currently supporting dual IT cost structures and high implementation
costs related to the IT transformation, which are expected to start rolling off
towards year-end and through 2027. These efforts are expected to bring
substantial improvements in customer experience and efficiencies over time. From
August, Telenor's new organisational structure will take effect, supporting a
more focused portfolio and a leaner operating model. Over time, the changes are
expected to create a Telenor with greater flexibility, higher efficiency,
improved customer value and increased return on capital.

Nordic markets remain challenging, with signs of improvement 

In the Norwegian mobile market, there has been a gradual increase in competition
for mobile subscribers, with more promotional activity in recent quarters.
Compared with a particularly strong second quarter last year, B2C growth slowed
this quarter. At the same time, Telenor grew well in B2B and saw encouraging
developments in the Norwegian market last month. In Finland, market conditions
remained competitive, while Sweden, Denmark and Amp delivered good financial
progress during the quarter.

Security and defence remain a strategic focus

Today, Telenor-owned defence communications specialist KNL announces a new EUR
6.5 million contract with the Finnish Defence Forces. Earlier in the quarter,
KNL was also appointed to the United Kingdom's Tactical Communication Systems
Framework, while Telenor Norway secured a framework agreement with the Norwegian
Armed Forces and the Norwegian National Security Authority.

During the quarter Telenor also announced the establishment of Telenor Sovereign
Cloud, a new company designed to provide nationally controlled cloud
infrastructure for organisations with stringent requirements for security,
resilience and regulatory compliance.

"In a more uncertain environment, secure and resilient communications remain a
key strategic focus area for Telenor. We are seeing increasing demand for
trusted connectivity and mission-critical communication services across both
public and private sectors," says Schilbred Fasmer.

Building a stronger and more focused Telenor

Telenor also made important progress in strengthening its portfolio and Nordic
position during the quarter. The partnership with Verdane with 50/50 ownership
in Telenor Connexion unlocks significant value while supporting the next phase
of growth in IoT.

In broadband, the approval of the GlobalConnect consumer transaction and the
acquisition of Enivest strengthen Telenor's position in Norway, while the
acquisition of Bahnhof expands scale and breadth in the Swedish broadband
market. The three broadband transactions are expected to generate sizeable cash
flow synergies from 2030.

Telenor remains in a very strong financial position and is well under way with
the first year of its three-year share buyback programme, which will reduce
share count over time and support growth in earnings and dividends per share.

"Our focus is firmly on execution - improving commercial momentum, delivering
transformation benefits and translating this year's strategic actions and M&A
into stronger cash flow and returns over time. Our long-term ambitions remain
unchanged, and we remain confident in our strategic direction," says Schilbred
Fasmer.

Financial outlook for 2026:

The outlook for the 2026 is moderated on the back of market conditions in
addition a few technical factors.
o	Flat to low-single-digit organic growth in Nordic service revenues (changed
from low-single-digit).
o	Flat to low-single-digit organic growth in adjusted EBITDA in the Nordics
(changed from low-to-mid-single-single-digit).
o	Around 14% capex to sales, excluding leases, for the Nordic business.
o	Flat to slightly negative organic growth in adjusted EBITDA for the Group
(changed from flat-to-low-single-digit).
o	Free cash flow before M&A excluding dividends from associated companies and
incremental spectrum of around NOK 10 billion (changed from NOK 10-11 billion).

Items related to prior years' periods, including the mentioned TV VAT charge for
2020-2022, remain excluded from the outlook.

For further information, please contact:
Frank Maaø, SVP Capital Markets and Investor Relations, mobile +47 916 74 045
Thomas Midteide, SVP Communications, mobile +47 962 32 017

This information is subject to the disclosure requirements pursuant to section
5-12 of the Securities Trading Act.
ide\, SVP Communications\, mobile +47 962 32 017\
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This information is subject to the disclosure requirements pursuant to section\
5-12 of the Securities Trading Act.\