Ajay Soni

Ajay Soni asked about the NOK 13 billion free cash flow guidance, seeking to understand potential risks or headwinds for the rest of the year, particularly concerning dividends from Asian operations like True.

Answer

CFO Torbjorn Wist reaffirmed the NOK 13 billion free cash flow outlook, stating they remain confident in receiving a meaningful dividend from True in the second half of the year. He noted that while various factors can influence the outcome, internal analyses support their ability to meet the guidance.

Ajay Soni questioned the key drivers behind the upgraded free cash flow guidance, given headwinds in Bangladesh, and asked if these same drivers would support the 2025 goal of covering the dividend. He also followed up on whether Nordic EBITDA could be expected to continue growing faster than service revenue.

Answer

Acting CFO Kasper Kaarboe explained the free cash flow upgrade was driven by the very strong performance in the Nordics, which confirmed their confidence. For 2025, he reiterated that the key building blocks are continued Nordic EBITDA momentum, lower CapEx post-5G rollout, and expected dividends from True. CEO Sigve Brekke confirmed that Nordic EBITDA is expected to grow faster than revenue, driven by a negative OpEx development in the coming year.

Asked for clarification on the EBITDA phasing for the year, questioning if the strong Q1 performance would be followed by a material step-up in Q2, and whether this strong start implies a potential beat on the full-year 3% growth guidance.

Answer

Q1 EBITDA growth was stronger than expected, and Q2 is also anticipated to be strong (north of 4%). However, Q3 growth will be lower (below 2%) due to a technical accounting change related to holiday provisions, before returning to around 3% in Q4. While the start to the year is solid, the company is reiterating its full-year guidance and not upgrading it at this time.

Questioned the interest cost trajectory for 2025, the expected CapEx level for 2026, and whether there was potential to exceed the guided share buyback amount given the policy to return 100% of free cash flow.

Answer

Executives guided for 2025 interest costs of €215 million and expect CapEx in 2026 to remain stable at the €1.25 billion ceiling. While not providing 2027 guidance, they confirmed the principle of returning all free cash flow to shareholders, implying that as free cash flow improves significantly in 2027, shareholder returns will increase accordingly.