Telenor Group has finalized the divestment of Telenor Pakistan on December 31, 2025, recording a net loss of NOK 3.044 billion, approximately $310 million USD, mainly due to historical foreign exchange translation differences accumulated over previous years. The announcement coincided with the release of Telenor’s fourth-quarter and full-year 2025 financial results, which reflected the sale as a major adjustment to group earnings. Following the divestment, Telenor Pakistan has been classified as discontinued operations, with historical financial figures restated to align with the change. The impact was immediately visible, as net income attributable to shareholders slipped into a loss of NOK 761 million in Q4, despite the company posting improved operating performance in its continuing markets.
Under the terms of the transaction, Telenor received NOK 1.582 billion, net of tax, from the sale of its shares. In addition, NOK 2.335 billion was paid by the buyer directly to Telenor Pakistan as a shareholder loan, which was used to clear internal debt owed to Telenor ASA. The divestment included the sale of the Pakistani unit along with its liabilities, effectively transferring operational responsibilities to the new owner. While the accounting figures highlight the net loss, the company maintained positive cash flows prior to the sale, generating NOK 407 million in free cash flow for 2025 from Telenor Pakistan. Cash flow from discontinued operations for the full year totaled NOK 4.37 billion, driven by the sale proceeds, deconsolidation effects, and financing inflows.
In the fourth quarter alone, discontinued operations contributed NOK 4.33 billion in cash, largely stemming from the transaction and the settlement of intercompany balances. Operating cash flows were partly offset by higher income tax payments, primarily due to the forgiveness of intercompany receivables. Telenor emphasized that the divestment significantly reduces the group’s exposure to regulatory, spectrum, and operational risks in the region. The exit enables Telenor to sharpen its focus on becoming a more Nordic-centric telecom operator while maintaining robust financial metrics across its continuing markets.
The divestment of Telenor Pakistan follows the company’s previous exits from India in 2018 and Canal Digital in 2020 and aligns with its ongoing strategy, including the planned sale of shares in True Corporation in Thailand. For the full year 2025, Telenor recorded total free cash flow of NOK 17.26 billion and improved its leverage ratio to 2.2 times, staying comfortably within target ranges. Excluding discontinued operations such as Pakistan, the group achieved solid growth in service revenues and EBITDA across its remaining markets, reflecting stable performance and disciplined capital allocation.
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