Good morning and welcome to Telenor's Q4 2025 results presentation. I'm Frank Maaø, head of investor relations, and our group CFO, Torbjørn Wist. As previously communicated, our CEO, Benedicte Schilbred Fasmer , is not here due to a planned surgery. As you can see, we've paid out dividends and capital allocation. Before we get started, a few quick notes: all service revenue and EBITDA growth rates are organic and constant currency basis, as always. When we mention EBITDA, we're referring to adjusted EBITDA. Note that this time Telenor Pakistan has been booked as discontinued operations and is thus excluded from the P&L figures that we show you today. With that, I'll hand you over to Torbjørn.
Thank you, Frank. Now, let me start by saying that Benedicte is recovering well from her surgery, and she sends her warm regards to all of you. We certainly look forward to welcoming Benedicte. I wouldn't be surprised if she has joined us online to follow this exciting results presentation. Now, what a year we have behind us. With strong operational momentum and disciplined execution across the Nordics and Asia. Our results underline some clear messages. First, we delivered a strong Q4 financial performance in line with the outlook we communicated earlier in the year. Our customer-first approach and disciplined operation enabled us to deliver. In the Nordics, despite brisk competition, particularly in Finland. Our full-year free cash flow before M&A reached NOK 12.9 billion. Around NOK 13 billion outlook and financial ambitions since 2022. The free cash flow, including M&A, was NOK 17.3 billion.
Secondly, consistent with the strategy we outlined at our recent Capital Markets Day, we continue to simplify the group portfolio, reinforcing the group's Nordic. We remain committed to long-term value creation in our remaining Asian assets. The third message today is that we propose to make the 16th. And prepare for a NOK 15 billion buyback program. And I will come back and talk more about the capital allocation and distribution later in the presentation. A year ago, right after Benedicte and I stepped into our roles, we outlined our priorities for the first year. These included strengthening customer centricity, execution culture, sharpening our focus on return on capital, and delivering on our 2025 financial ambitions, including our strong commitment. One year later, I'm pleased to say this is exactly what we have done. During the year, we evolved and refreshed our strategy, which we present.
Ambitions to the investment community at the CMD in November. Over the last months, we have also stepped up on execution on portfolio simplification. The word "clean" exits from Pakistan and Allente, and last but not least, with the agreement to sell Telenor's ownership in True, announced on the 22nd of January. Second value creation for our shareholders, as we will be exiting Thailand at more than three times the NOK 12 billion market value we had in Dtac at the time. Years ago. All in all, we are pleased with these steps to further sharpen the group's focus. Now, as mentioned, delivering on the. I am happy to confirm that we delivered on all parameters. During the year, we saw solid operational performance in the Nordics, in line with the outlook provided for. An EBITDA growth of 5.8% for the group compared to the outlook of 5%-6%.
Note, however, that the 5.8% excludes Telenor. While our outlook included Telenor Pakistan. If Pakistan had been included in the actuals, EBITDA growth for the group would have been one percentage point higher. Informed the outlook on this metric. As mentioned in the highlights, free cash flow before M&A ended at NOK 12.9 billion, in line with our guidance. Moving to the highlights for the group financials. Group service revenues reached NOK 15.3 billion, up 2.6% year-on-year. Raised 11.7% to NOK 8.6 billion, driven by the strong performance in the Nordics, while being helped three percentage points by effects related to accounting adjustments and reversals. Adjusted EPS was NOK 2.21, a material uplift from last year. Free cash flow before M&A came in at 4.33% year-on-year. The group CapEx to sales ratio was 15.5%, four percentage points lower than in the same period.
The ratio was 17.2% for the quarter and 14.3% for the full year. The leverage ratio closed the year at target range, mainly driven by positive year-on-year effect in total free cash flow. Now, as we repeatedly stated, driving return on capital employed time remains a top priority for us. We are pleased to note that for the last 12 months, ROCE came in at 9.2%, up one percentage point. If you exclude the associated companies, the group ROCE would have been 13.6%. Then, zooming in on the top line. Growth of 2.6% year-over-year remained constrained by macro conditions in Bangladesh. If you exclude a VAT adjustment in Norway and a revenue Q4 last year, the underlying growth for the group would have been 1.8%. Our Nordic business area was the main contributor, as usual, while. Now, turning to OpEx.
OpEx declined by close to 2% in Q4, helped by relentless cost focus through. Million withholding tax reversal related to Telenor Pakistan in other group OpEx, and OpEx adjustments in the Nordics in the same quarter last year. Adjusted. Flat year-over-year for the group and for the Nordics. In the Nordics, OpEx in Norway increased by 3.4%, mainly caused by. And transformation, as previously flagged, as well as reparation expenses following the storm Amy. Now, sales and marketing expenses also increased in the Nordics in. Market early last year. Moving to group EBITDA, which grew strongly at 11.7% in Q4. As you. All business areas contributed to this growth, even though the main part came from the Nordics. Amp delivered significant improvements across most of its businesses and. EBITDA growth. EBITDA contracted in Asia.
However, this was due to timing of internal cost allocations between the Asia headquarters and the Telenor. Regarding the reporting segment called Other, which mainly consists of our corporate functions, in Q4 2024, a retroactive true-up was made for internal segment, while in 2025, these charges were more evenly spread out through the year. On the chart to the right, we have visualized this effect. As you Asia from these timing effects offsets the similarly positive year-over-year effect in the other segment. Finally, excluding this effect, the other segment year-over-year, largely explained by external revenues in Telenor Procurement Company, which tends to vary significantly between quarters. Contribution from group eliminations was due to the mentioned NOK 75 million reversal. Now, clearly, 11.7% is a significant number. Regard, note that 3.2 percentage points is a result of the mentioned effects I talked about earlier. A would have been 8.5%.
Turning to revenues in the Nordics. The Nordics continued to deliver top-line growth. Quarter, we reported 2.8% organic growth driven by our more-for-more strategy. Adjusted for the reversal effects I mentioned pertaining to Q4 last year, the percent. Norway was the largest contributor, but we did see solid execution and solid contribution from across our Nordic markets. We grew 4%, driven by ARPU uplift across all markets, in addition to customer growth in Sweden. Fixed service revenues grew only marginally, with being offset by active base management with focus on profitability in Sweden, as we've talked about in previous quarters. Across markets, churn. Expected significantly sharpened price competition in Finland. We nevertheless added 59,000 new postpaid customers in Sweden and Denmark during the period, while about 24,000 prepaid postpaid subscribers leave us in Norway and Finland amid high promotional seasonality. On. Some more detail.
Norway remained the strongest contributor at 2.9% growth, underpinned by healthy ARPU trends with 5%. Broadband. In Sweden, mobile service revenues rose 4.5%, offsetting a 5% managed decline in fixed service revenues, as talked about. Net adds of 45,000 in Sweden, helped by a successful Black Month with strong traction in 5G broadband. By 3.6%. A new development is that all Danish operators have increased list prices over the last months. Still, the market remained highly promotional. The Finnish market, we saw a more visible presence of the new MVNO, as well as deep promotional discounts led by one of the network operators. Well amid elevated market churn, the price level on incoming subscriptions was significantly dilutive compared to DNA's backbook ARPU. Service revenues by 4.3%, driven by upselling, solid commercial execution, and a larger mobile subscriber base compared to last year.
DNA kept its postpaid smartphone base steady during the quarter, as the negative net adds were driven by a prepaid cleanup and some decline in mobile broadband. Total 9%. Overall, Nordics' 2.8% service revenue growth reflects continued strong performance strategy, despite broadly pronounced seasonality and increased competition in Finland. Now, moving to EBITDA. EBITDA at 8.7% for the quarter. Gross profit was up more than 4%, supported by upselling, pricing, product mix, wholesale Finland. Ongoing transformation programs helped reduce OpEx by 0.7%, despite higher commercial activities and increased spending on robust. Yet again, Norway remained our top contributor, with 9.3% EBITDA growth, helped by the VAT reversals in the same quarter last year. In addition from the National Roaming Agreement, and adjusted for these factors, EBITDA growth would have been about 3% in Norway.
In Sweden, the continuation transformation had a positive impact on gross profit, which grew 3.4%, contributing to the 11% growth in EBITDA. For service transformation efforts, this brought EBITDA to the 40% margin, which is a milestone for Telenor Sweden, which just surpassed the basis. Even when excluding the VAT-related reversal last year, EBITDA growth was still rock solid at 7.6%. Continued to execute commercially while relentlessly tweaking costs, leading to an EBITDA growth of 5.8%. The small OpEx increase was mainly retail. DNA both grew its top line while cutting back on costs, resulting in a 6.6% organic growth in adjusted EBITDA. This market conditions just described in Finland. Now, in summary, we are pleased with the continued strong execution in the Nordics. Now then, let's move over to Asia.
Before enjoying the fireworks on New Year's Eve, we closed the sale of Telenor Pakistan, which is now out of the books. Consequence, our Asia revenues and EBITDA, as charted on the left side of this slide, are nominal NOK amounts that only reflect Grameenphone in addition to the cost of. Grameenphone delivered organic service revenue growth of 3.4% in the quarter, but as you can see, the NOK amounts came down due to a weakening Bangladeshi Taka. Note that when adding back the accounting corrections last year, Grameenphone revenues and EBITDA were basically flat year-over-year. Spending environment and continued tough price competition on data. Grameenphone was just recently awarded important spectrum resources in this reserve price, which will be key to improve indoor and outdoor coverage for our customers going forward. As for the associated companies, the major.
Of the True exit, which will be a two-stage deal, as mentioned earlier. This transaction is a major value creation milestone for Telenor, as it concluded in Thailand. Benedicte and I would like to thank both current and previous employees that have contributed a big part of their lives to this fantastic. Note that we expect to close the first sale of the first tranche before True will pay its Q4. CelcomDigi managed to improve commercial execution in its third quarter, swinging back to top-line growth. While Q3 EBITDA. Debt, the company paid out a stable dividend in Q4. We continue to work with partners to support CelcomDigi in strengthening its. Whose financial situation was, as described in their own report, distressed. Our goal is to ensure a setup with more efficient use of spectrum assets to the benefit of customer and society in Malaysia.
DNA is expected to secure an additional 100 MHz of spectrum. Planned exit in Q2 2026, which will be a helpful step for the company. Now, finally, we have noted assets in the wake of the recent announcement of the sale of True. As such, let me be clear. As an active owner, Telenor is committed in both Grameenphone and CelcomDigi. And the sale of True should not be interpreted as signaling any imminent or near-term plans to sell our other. Now then, let's turn to Amp, which delivered a strong quarter. At our recent CMD, we presented a in Amp. Part of that is to develop companies close to core within security and IoT. And we saw meaningful progress in several businesses. Highlight two here. Firstly, KNL made a strong contribution on both revenues and EBITDA.
Now, KNL offers mission-critical services, software-based, and ultra-secure tactical defense communication solutions for use over long distances. Crucial to this progress were deliveries on contract. Defense forces announced earlier in the year. This is a truly scalable business with telco margins, but far higher growth, and we look forward to see. Secondly, the largest Connexion, the largest single contributor to Amp's EBITDA and cash flow on a yearly basis. This company is Europe and number 10 globally within managed IoT connectivity. In Q4, Connexion delivered 9% organic revenue growth, achieving 24% year-over-year growth in its global SIM base. EBITDA and Connexion was, however, affected negatively as FX and OpEx growth. Overall, we are pleased with the development of the Amp portfolio, which is seeing continued value uplift from a net asset value perspective. Further details can be found on our website.
Then, moving on to the profit and loss highlights for the group. We're pleased to report that and net profit from associated companies drove adjusted EPS to an 89% increase in the fourth quarter, while for the full year 2025. In terms of special items and notable swing factors this quarter, other income and expenses were higher than last year. Equipment, as well as workforce reductions. The NOK 0.5 billion fourth quarter fluctuation in net financial items was due to fair value changes related to True, was a NOK 3 billion loss on the discontinued line, in addition to a NOK 0.4 billion tax expense in conjunction with the divestment of. Next, let me walk you through the main variables behind our free cash flow before M&A of NOK 4.1 billion in the fourth quarter.
8.6 billion, we need to add back the discontinued contribution from Pakistan of NOK 0.5 billion, since this was part of our cash flow in the quarter. Had a solid contribution from working capital, including about NOK 900 million from the use of handset financing. We received NOK 1.3 billion in dividends from associated. Amounted to NOK 2.9 billion, of which NOK 2.2 billion came from the Nordics. Telenor Sweden made a scheduled. On its share of the multiband spectrum license won in 2023, bringing the total spectrum spend for the group to NOK 0.5 billion in Q4. On the M&A. NOK 4.6 billion for the sale of Telenor Pakistan, along with NOK 0.6 billion for the sale of Allente, on top of the pre-closing dividend the company paid. And this. NOK 1 billion this quarter. Now, then, let us take a look at our leverage ratio. Our leverage ratio.
Within our target band of 1.8-2.3. The net debt reduction happened despite a NOK 1 billion increase due to a NOK weakening during the quarter. Related to the second tranche of our dividend paid out in 2025, which was now more than. Free cash flow in the quarter and the deconsolidation of NOK 1.8 billion in net debt relating to Telenor Pakistan. Telenor has a 16-year track record on delivering on our dividend policy of year-on-year growth in ordinary dividends per share. Divestitures in the same period. The group has changed over time, as you know. Over time, this ordinary dividend has been complemented by extraordinary. Appropriate. As you may recall, we reconfirmed our strong commitment to our dividend policy at our CMD in November. Adding another year.
Proposed a dividend of NOK 9.7 per share for approval at the upcoming AGM, with payments happening in June and October. Now then, let me move on to the use of proceeds from True once the transaction has been completed. At the recent CMD, we explain. Our return mindset as part of the value creation engine of Telenor. How we distribute capital back to shareholders is a very important part of our capital. Need to ensure that we are effective and targeted in how we allocate capital to the best projects to create and compound value over time. Capital employed. This includes organic reinvestments, but also value accretive inorganic investments that help us strengthen our customer proposition. Further scale and efficiencies. We are now preparing to allocate the first NOK 32 billion proceeds to be received from the first tranche in True.
We plan the following use of proceeds. NOK 15 billion will be allocated to a share buyback program, and I'll give you more details on that in a minute. Allocated to repayment of the EUR 1 billion bond, which matures now in May. NOK 6 billion will be allocated to finance the closing of our regional consumer fiber division, likely due in the second quarter. The remaining NOK 7 billion to be received from the sale, we will deal with the use of proceeds at that point in time. We will be retaining some extra financial flexibility near-term to consider further value creating acquisitions in the opportunities that offers attractive long-term return on capital by driving customer reach and satisfaction, scale, and efficiencies. Now, to the extent that sufficient materialize, we will, of course, consider further return on capital to shareholders to ensure balance sheet efficiency while protecting our credit rating.
About the buybacks. The board has stated its intention to initiate a share purchase program over three years once the first sale of shares. The buybacks are to be confirmed each year by the AGM. The objective is to support per share value accretion and dividend coverage by reducing. As in the past, our stock exchange repurchases will be executed by a broker on an arm's length basis and will be made in full compliance with. The exact time to completion may therefore depend a little bit on the liquidity of our shares on the Oslo Stock Exchange. As usual, the Norwegian. With its proportional share of ownership in line with historical practice. So then, if I move on to the financial outlook. The financial outlook is in line with our indications at the Capital Markets Day. Our mid and long-term ambitions remain unchanged and are shown here only for.
2026, we expect a low single-digit growth in service revenues in the Nordics. As for Nordics' EBITDA, we see mid-single-digit growth while we forecast leases of around 14% in the Nordics. Please note that we do foresee quite significant variations between quarters in 2026. Part of the year, in Q2, the Nordics is facing a particularly tough comparable period. Firstly, we benefited from particularly favorable timing of the year. Secondly, the year-on-year uplift from the national roaming contract in Norway will be lapped in mid-March. We had around NOK 550 million in 2025, which was more than originally expected. We have said we would expect these wholesale revenues to start fading during 2026 and particularly in 2027. Competitors, this remains our view. Our best estimate is currently that these revenues will be around the same level in 2026 as last year, although quite low, if at all.
I might add on this that in terms of the financial ambitions for 2028 and 2030, there are no national roaming revenues. Hoping for a gradual macro upswing following the February elections, but we find it prudent to have modest expectations. For the group, we anticipate to mid-single digits. A key sensitivity for the outcome will be the shape and strength of a potential macro recovery in Bangladesh. FCF before M&A, excluding dividends from associates and incremental spectrum, to come in at between NOK 10 billion and NOK 11 billion. We expect to see a somewhat 2026, similar to 2025. All in all, outlook for the current year reaffirms our overall. To conclude, in 2025, we delivered on our financial ambitions. We are executing on the strategy of efficiency through transformation and overall simplification, including becoming more of a Nordic-centric group over. Our longstanding commitment to capital distribution to our shareholders.
With this, I would like to hand the word back to Frank.
Thank you, Torbjørn. Good presentation. Now then to the analyst Q&A. And as usual, please limit yourself to only one question. And if needed, a quick related clarification. A chance to ask their question as well. So, operator, please go ahead.
Thank you. At this time, we invite those analysts wishing to ask. Can be found at the bottom of your screen. When it is your turn, you will receive a prompt to be promoted as a panelist. Please accept, wait a moment, and once you've been introduced, you may. And ask your question. As a reminder, we are allowing analysts one question and one related follow-up today. To form. Our first question will come from Sofija Rakicevic with Goldman Sachs. Please unmute your question.
Hi, good morning, everyone.
Just one question for me, and that is, what potential headwinds are you factoring in your medium term? Given that underlying 2025 growth for this year is around 5% and a bit more than that if we exclude Asia and one-offs, and you're guiding for mid-single-digit. So what do you expect to deteriorate on an underlying basis over the medium term? Thank you.
Yeah, as far as our outlook is concerned, the market will continue to be competitive as it has been in all our Nordic markets. And we expect this to continue. Of course, do what we can to strengthen our competitive position with our leading network position in Norway and the strong network position in the other areas to ensure that is. So we don't have any particular headwinds over and above the normal competitive behavior. Competition has always been tough and will continue to be tough.
Our normal assumptions that we have into our overall ambitions going forward. So in terms of the four. We have been clear on that there will be step-ups on sales and marketing spend to ensure that we defend. Time, we will continue to push forward on our strong transformation program as we have over. Offset these effects. So that gives us comfort that the forecast for 2026 in terms of our Nordic expectations. Deliver on well.
Thank you.
Thank you. [Question] comes from Ondrej Cabejsek with UBS. Please unmute your line, turn your video on, and ask your question.
Hi, Ondrej.
Hi. For the presentation, and let me join you, Torbjørn, in wishing Benedicte speedy recovery if indeed she is listening. I just wanted to follow up on. Allocation opportunities in the Nordics as a key focus area for you going forward.
I just wanted to understand from where we are standing today, what in your view preventing you from moving ahead, and when do you expect these to be cleared?
Sorry, which hurdles are you referring to then, Ondrej?
So some of the early hurdles, I guess, when you're looking at the capital allocation opportunities in the Nordics, which you mentioned, which Benedicte mentioned in the summer, etc.
Yeah, no, look. Comment on specifics. But clearly, we've been very clear at the Capital Markets Day that we see ourselves becoming over time. That means, of course, that we will be looking at value accretive opportunities that will help strengthen our footprint in this region. And the timeline will, of course, depend on whichever transaction would be considered. What is key for us is to ensure.
Is value accretive, will strengthen our customer offering, ensure that we get scale and efficiencies that will help drive return on capital employed. And we will, of course. As we do in any particular deal, to ensure that we maximize the chance of success for whatever we decide to pursue. But if we don't find. In my presentation, of course, consider further returns of capital to shareholders.
Thank you. And if I may follow up on this, so obviously, we've had the development in Norway with challenger Ice, which you are now hosting. Is this something that is placing a bit more urgency on you to kind of do.
Not this deal in and of itself. Just a couple of comments on this one. We are, of course, used to network cooperation, and we have.
As I mentioned in my presentation, the revenue effect, we do expect revenues from this agreement to be similar to taper off. We don't have any NRAs into the future plan. I think what this deal really brings. Norway is the only market that we remain regulated in. We believe it's long overdue that this regulation is removed with the creation of a strong second network. So our strong message to the authorities will be now is the time to take future. As far as them pulling together their network assets or in whichever structural form they do it. Had competition here for a long time. We are the leading network in Norway, both on scale, coverage, quality. We will, of course, continue to defend.
Invest in services, whether it be cyber or entertainment, in order to reinforce the strong customer relationship and the market position we have here in this wonderful country.
Okay. Thank you very much.
Our next question comes from Christoffer Bjørnsen with DNB Carnegie. Please unmute your audio, turn on your video, and go ahead with your question.
Hi, Christoffer. Good morning.
Great. Yes, thanks for letting me on and congrats on all the exciting news over the last period. I just wanted to kind of follow up on the. Kind of trying to ask the question without asking the question, but given that we'd expect, it's fair to assume that they're a decent customer, both Lyse and Tele business. Can you maybe help us understand a bit what the exposure is there? Are there significant overlaps where they could consolidate? I think I saw on the local.
Norway that the external revenues was about NOK 650 million in 2024. So just trying to gauge in the longer term for that 2030 target of 14-15. What kind of effects could be there in a base and a bear case scenario, or yeah.
Sure. Yeah. On our towers. Raise the tenancy ratio, which, of course, is other operators using our infrastructure. As far as if there should be. From the recently announced agreement between our two competitors, we estimate that we have about NOK 120 million-NOK 160 million. Impact from 2027, which is about 4%-5% of the tower's revenue. I think so it's not something that we deem substantial. Emergency network, etc., that is on our infrastructure. So it's about 4%-5% or NOK 120 million-NOK 160 million. And we don't anticipate that to hit before.
I would like to add that using infrastructure, co-hosting, co-locating on towers is, of course, a capital-effective. To remove this NOK 120 million-NOK 170 million remains to be seen. NOK 160 million.
Yeah, NOK 160 million, thank you.
And mind you, that's due to the overlap. Collocation of the towers between the two parties.
All right. That's helpful. Thank you very much. And then just final, the follow-up on the Bangladesh, you mentioned. And so on. Still, there are material parts of the portfolio coming up for renewal or expiry later this year. Can you give any indications on how confident you are that. Auctions and whenever they could end up being?
I don't have any new information on that. These will be renewals, and I'm sure that there will be an orderly with the 700 auction and the result of that. And so we'll deal with the renewals when the time comes.
All right.
Our next question comes from Felix Henriksson with Nordea. Please unmute your line, turn your audio on, and ask your question.
Guys, hope you can hear me. Thanks for letting me on. The question is on Finland, where you saw tough competition in Q4. The market they've seen some easing in the environment in January with one of the MVNOs becoming a bit more passive and also the market leader raising prices. Also, do you sort of agree with this, and have you seen easing in the competitive environment in Finland into Q1? Thanks.
Yeah, we see the same of what's happening in the Finnish market. It was in a very competitive December, but that seems to have into January.
Okay. Fair enough. And then if I may, just with a quick follow-up, published that Bangladeshi CapEx in Q4, we're still quite low.
I think you commented that you plan to ramp that up a bit into 2026. So can you sort of have anything to share about the expectations regarding the spectrum renewals in Bangladesh as well? Thank you.
As I think I've covered the spectrum renewal and Christoffer is concerned. We've been very clear that Bangladesh is a country where there is a voice to data transition going on. We have, of course, now secured critical for excellent indoor and outdoor coverage of data in the country. So that will, of course, entail some CapEx. We have, as situation in the country. We have been very prudent in how we release CapEx into the country so that we're not pushed when the market environment is very muted. So we continue to release CapEx on a quarterly basis. That we help protect the cash flows in the business.
Top line has been challenging. I think the team has done an excellent job in terms of managing costs. We are very mindful to ensure that we release CapEx on a staged basis, but that there will be some increase in CapEx to ensure that we strengthen. Tagged, but we will always do this in a very disciplined manner.
Yeah.
And I might add that we're not going to see a big. Case of a decent macro upswing. It's more a normalization to what you've seen.
Felix, for the coming questions, I would remind you to please stick to one question and potentially a related follow-up. Thank you. Next question, please.
Our next question comes from Keval Khiroya with Deutsche Bank. Please unmute your line and ask your question.
Thank you for taking the question. You're still.
In Norway, do you see merits of exploring other fixed deals in the Nordic footprint, or do you think mobile is the main focus for Nordic M&A? Thank you.
I'm sure you would love for me to answer detailed on that question, but which areas and which company. Something that you would hear about along with everyone else at the same time. But we have, of course, now taken a step in strengthening our. Of GlobalConnect. And it's, of course, natural that we will look at both mobile and fixed in the years ahead, given that both are an important part of.
Great. Thank you. And just by way of follow-up, you mentioned that you will explore Nordic M&A, and if that's not available, you could return additional.
appreciate you can't be precise on timing of M&A, but is there any form of timeline by which you want to decide whether to still leave that capacity for M&A? Additional returns back? Thank you.
Well, I think we've obviously announced a significant return of capital to our shareholders, as well as the NOK 15 billion buyback. So we will have to come back and update you as and when we see potential for additional return on accretive opportunities.
That's clear. Thank you.
Our next question comes from Fred. Please unmute your audio, turn your video on, and ask your question.
Good morning, Fredrik.
Hi, Fredrik.
Good morning. Good morning. Thank you for taking my time. I would like to listen a little bit to you digging into your OpEx and what your plans are for OpEx in 2026.
Not so much on the actual numbers, but on the operational work you intend to do or that you have ongoing that will sort of give you effects. Thank you.
Yeah. I think we obviously spent quite a lot of time on the transformative efforts and initiatives at our recent capital. Sort of could be a very long answer if I'm going to go dig into all those details. But clearly, we continue to. Getting rid of what I refer to as technology debt, which, of course, ties up a lot of costs. These are important aspects of cost. It is ensuring we drive down the cost of procurement, using common products to ensure we get scale benefits. It is deploying. In the consumer side, the networks and IT. We've talked about shared use of shared services where we have added additional elements into shared.
Markets will also have some market-specific transformations ongoing. So that kind of gives you flavor. We have extensive programs running. Coordinated and are being very well run, and they will continue full force into 2026 as well.
And I may add, as we said on the Capital Markets Day, 2026 will be kind of on. To the implementation costs related to some of these transformative efforts, particularly in Norway and Denmark.
Yeah. Okay. So it's a slight sort of OpEx decline sort of on fixed FX figures in 2026?
Yeah. 2026, there are still costs related to the transformation efforts, which will carry out through the year, as we've been clear on in the past. In Denmark, we have a. So it is but, of course, the transformation. On where they are in their relative transformation efforts. But the areas that I touched on, whether it be shared services.
Procurement, those are things that will span across.
Thank you very much.
Thank you.
Thank you, Fredrik.
Our next question comes from. Please unmute your line, open your video, and ask your question.
Good morning, Ulrik. Are you there still?
I believe we have lost Ulrik, so we will. Ajay Soni with JP Morgan. Please unmute your line, turn your video on, and ask your question.
There we h ave him.
Hi, guys.
Hey.
Hi. Hope you can hear me.
Yeah.
Sorry, the question was just on Sweden. You mentioned that some of your growth there came from 5G. So just wondering what the contribution was from that and what that currently represents within your mobile base. And then I'll just ask the follow-up now, which is that.
Be an area of growth given that you've been phasing out maybe some of the less profitable fixed lines in the last year or so? Thank you.
Yeah. I don't think we're going to go into sort of trying to give, but clearly focusing on our sort of the mobile broadband effort, as you talked about, will definitely. I believe it was about 12,000 5G broadband in the quarter in Sweden. And that, of course, is an important contribution to in this particular area. I think Telenor Sweden is doing a phenomenal job in pushing this product going forward. I think the great thing is to see the fixed portfolio that they have been working on, which has contributed so strongly to the growth in gross profit and hence EBITDA in the country.
Okay. If that was the last question.
No further questions.
Okay. All right. Well, in that case, let me use this opportunity to thank everyone for listening in and wish you all a very good day. Thank you.