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Telenor Group has completed the divestment of Telenor Pakistan on December 31, 2025, booking a net loss of 3.044 billion NOK (Norwegian Krone) which is $310 million USD approx., primarily due to historical foreign exchange translation differences, the Norwegian telecom group said while announcing its fourth-quarter and full-year 2025 financial results.
The Norwegian telecom group said it finalized the divestment of Telenor Pakistan on December 31, 2025, booking a net loss of NOK 3.044 billion, largely driven by historical foreign exchange translation differences accumulated over the years. The announcement came with the release of Telenor’s fourth-quarter and full-year 2025 financial results.
Following the sale, Telenor Pakistan has been classified as discontinued operations from the fourth quarter of 2025, with past financial figures restated to reflect the change. The impact was immediately visible in group earnings, as net income attributable to shareholders slipped into a loss of NOK 761 million in Q4, despite improved operating performance in the company’s remaining markets.
Under the transaction, Telenor received NOK 1.582 billion, net of tax, from the sale of its shares. Separately, 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 Pakistani unit was sold along with its liabilities to the new owner.
While the accounting numbers tell a difficult story, the cash picture was more stable. Before the sale, Telenor Pakistan continued to generate positive cash flows, contributing NOK 407 million in free cash flow during 2025. For the full year, cash flow from discontinued operations linked to Pakistan totaled NOK 4.37 billion, supported by the sale proceeds, deconsolidation effects and financing inflows.
In the fourth quarter alone, discontinued operations delivered NOK 4.33 billion in cash, mainly from the transaction and settlement of intercompany balances. However, operating cash flows were partly offset by higher income tax payments, triggered by the forgiveness of intercompany receivables.
Telenor said the exit significantly reduces its exposure to regulatory, spectrum and corruption risks, allowing the group to sharpen its focus on becoming a more Nordic-centric telecom operator. The Pakistan divestment follows earlier exits from India in 2018 and Canal Digital in 2020, and comes alongside the group’s announced sale of shares in True Corporation in Thailand.
For the full year 2025, Telenor reported total free cash flow of NOK 17.26 billion, while its leverage ratio improved to 2.2 times, staying comfortably within the company’s target range. Excluding discontinued operations such as Pakistan, the group recorded solid growth in service revenues and EBITDA across its continuing markets.
