Telenor Books Massive PKR 88bn Loss on Pakistan Exit as Sale to PTCL Closes

Telenor Group has completed the divestment of Telenor Pakistan as of December 31, 2025, booking a net loss of approximately PKR 88 billion following its exit from the market, the Norwegian telecom operator said in its fourth-quarter and full-year 2025 financial results.

The loss, equivalent to NOK 3.044 billion, was primarily attributed to historical foreign exchange translation differences accumulated over the years. As a result of the transaction, Telenor Pakistan has been classified as a discontinued operation from the fourth quarter of 2025, with prior-period financials restated accordingly.

The divestment weighed heavily on group profitability, pushing net income attributable to equity holders into a loss of NOK 761 million in Q4, despite improved operating performance in Telenor’s continuing markets.

Under the transaction, Telenor received PKR 45.8 billion (NOK 1.582 billion, net of tax) as consideration for the sale of shares. In addition, Telenor Pakistan received PKR 67.7 billion (NOK 2.335 billion) from the buyer in the form of a shareholder loan, which was used to settle internal debt owed to Telenor ASA. The Pakistani operation was divested along with its outstanding debt to the new shareholder.

Telenor said the recognized loss was largely non-cash, with around PKR 84 billion linked to the reclassification of accumulated currency translation differences and net investment hedges previously recorded in other comprehensive income.

Despite the accounting impact, Telenor Pakistan generated positive cash flows prior to disposal. In 2025, the operation contributed PKR 11.8 billion in free cash flow before mergers and acquisitions. Total cash flow from discontinued operations related to Pakistan amounted to PKR 126.5 billion for the full year, supported by sale proceeds, deconsolidation effects, and financing inflows.

In the fourth quarter alone, discontinued operations delivered cash inflows of PKR 125.3 billion, largely reflecting proceeds from the share sale and the settlement of intercompany balances. Operating cash flows were, however, partially offset by higher income tax payments following the forgiveness of intercompany receivables.

Telenor said the exit from Pakistan reduces its exposure to regulatory, spectrum, and corruption-related risks, aligning with its strategy to become a more Nordic-focused telecom group. The move follows earlier exits from India in 2018 and Canal Digital in 2020 and comes alongside the group’s announced sale of its stake in True Corporation Thailand.

For the full year 2025, Telenor reported total free cash flow of PKR 503 billion (NOK 17.26 billion), while its leverage ratio improved to 2.2 times, remaining within the company’s target range. Excluding discontinued operations such as Telenor Pakistan, the group reported solid underlying growth in service revenues and EBITDA across its continuing markets.

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