Telenor ASA (TEL) Earnings Call Transcript & Summary

Good morning, and welcome to Telenor's Second Quarter Results Presentation for 2026. With me here today, I have our CEO, Benedicte Fasmer; and our CFO, Torbjorn Wist. Today's agenda follows our usual structure. Benedicte will start with the main developments in the quarter, including the Nordic markets, transformation, M&A and defense topics, and Torbjorn will then take you through the financials. As usual, all revenue and EBITDA growth, just as a reminder, in terms of rates, our organic and made on a constant currency basis. And EBITDA always refers to adjusted EBITDA. At the end of the presentation, we will open the line for questions. And with that, Benedicte, over to you.

Thank you very much, Frank, and good morning, everyone. The results in the group's business units were mixed this quarter with a more demanding mobile market in Norway tough competition in Finland, but good financial progress in Sweden, Denmark and app. In AMP, the net asset value of the portfolio has grown to around NOK 15 billion reflecting the new connection partnership and solid performance in KNL. The inflationary effect from the Iran war still weighs on Gramin phone in Bangladesh. We have particularly tough year-on-year comparables due to the national roaming agreement, the timing and size of pricing adjustments, phasing and step-up of robustification and transformation costs, and we faced a more promotional market in Norway this quarter where we also needed to make a provision related to a dispute on VAT for TV news channels dating back to 2020 to 2022. In Q2, we report a decline in service revenues of 0.7% and a decline in EBITDA of 4.8%. And However, underlying performance on a fully comparable basis was better with 0.3% increase in service revenues and a 2.3% decrease in EBITDA. In Q2, we've taken active measures to build a stronger Nordic franchise going forward. We took multiple important steps to strengthen our Nordic market position expanding our broadband footprint in Norway and becoming the #2 fixed provider in Sweden. We announced a value-unlocking partnership for Telenor Connection to scale growth within IoT, and we also were awarded important contracts within defense and mission-critical communications. 2026 is a transition year for Telenor from several perspectives. And as you remember, we have just sold 2 of our Asian businesses and focusing more on the Nordics. We also advanced on our transformation agenda, which is set to bring substantial cost improvement in the years to come. However, due to the performance year-to-date, we are revising down our outlook for the year, and we will elaborate on this later in the presentation. This said, our strategic direction and mid- to long-term financial ambitions remain unchanged. We are building a simpler, more Nordic-centric and more profitable Telenor. Turning to the Nordics. As mentioned, performance was mixed across the markets this quarter. In Norway, we faced an exceptionally tough comparison with 16% EBITDA growth in Q2 last year. Reported results were also affected by the TV VAT provision and the business transfers we mentioned earlier this year. Excluding these effects, service revenues increased by 0.6% in Norway, while EBITDA declined by 2% due to timing effects on both revenues and OpEx, including transitional IT costs. In mobile, we grew well in B2B and also won a frame agreement with the Armed Forces that will add approximately 25,000 subscriptions during the year. In B2C, a quite promotional quarter and market put further pressure on our ARPU growth, although we saw some positive pricing trends towards -- in the market during June. Sweden added 36,000 new mobile customers and grew mobile service revenue by 3.1%. The fixed transformation continued and helped drive an EBITDA growth of 5.2%. Denmark, sustained its commercial momentum and delivered service revenue growth of 3.5%. EBITDA improved substantially from the previous quarter, in line with our expectations. In Finland, we saw modest improvement over the previous quarter with a low level of churn in B2C mobile. The recovery in new sales consumer output was modest as earlier campaign pricing continues to affect the customer base. As ARPU for DNA's new sales did not improve much from March through June, we expect new sales ARPUs to still take a few months to potentially coming back to year-over-year growth. We also see a more competitive fixed market in Finland. Transformation initiatives supported good cost control and underlying EBITDA growth of 4.8%. Overall, the underlying development in the Nordics is more resilient than the reported figures suggest. But we also see that the competition has picked up in some of our markets compared to what we saw earlier this year. Let me briefly give you status on our transformation agenda. As mentioned at our CMD, 2026 is the peak transition year with significant activities across several programs driving an uptick in Nordic OpEx in the short term. We execute the transformation on a country-by-country basis, and you see examples of this on this slide. We are also scaling Pan-Nordic programs in selected areas like, for instance, shared services, common products, AI, procurement and network and IT. In the near term, this means supporting dual IT cost structures and incurring implementation costs, which will start rolling off from 2027. In May, we announced a new and simplified organizational structure with effect from mid-August. Leading to a leaner operating model supporting our more focused portfolio. By removing the business area layer, we will be reducing costs, FTEs and complexity and annual OpEx savings will be around NOK 0.3 billion from 2027. Additionally, we have scaled down our office in Singapore following the exit of True and Pakistan, which with annual OpEx savings of NOK 75 million already effective from this quarter. We are confident that these efforts will drive meaningful cost efficiency with average annual OpEx reductions in the Nordics to minus 2% from 25% to 28%, while increasing operational leverage and organizational speed. Let me now share a more concrete set of examples from Norway, where we see the greatest complexity and the most significant benefit from simplification. We have a strong and long track record of reducing costs in Norway. We currently have multiple large-scale transformation programs running in parallel across 4 key dimensions: improving robustness, modernizing platforms, reducing systems and product complexity and digitizing remaining manual interfaces. And we are now carrying out the heavy lifting on IT migration, legacy platform exit, cloud transformation and robust litigation. And as you may understand, this temporarily increases our cost because part of the old and new platforms run in parallel, in addition to implementation costs on top. But from January 1, we are set to exit 1 major legacy vendor platform and move workloads to public cloud. This alone would lead to NOK 0.4 billion OpEx and CapEx savings ramping up from next year. In addition, our private cloud initiative targets further savings of around NOK 0.4 billion over the next 4 years. And these are just 2 examples of the large transformation program we have in Norway. In short, we are taking transition costs now and to build a stronger and more efficient platform for the years ahead. Our strategic momentum this quarter extended well beyond transformation. We started by unlocking value in Telenor connection through a partnership that supports further scaling globally in IoT. The IoT transaction is strategically important and financially attractive and will release close to NOK 4 billion in proceeds upon closing expected in Q3. We also made some important progress within broadband. In Norway, the Global Connect transaction was approved by the Competition Authority in Q2, and as a result of the announced broadband transactions, Telenor is set to become the #2 broadband provider, both in Norway and Sweden, pending regulatory approval. The 3 broadband deals will add around NOK 3.5 billion in revenues and are expected to generate around NOK [ 0.5 ] billion in annual synergies from 2030 and beyond. Together, these actions sharpen our portfolio, strengthen our Nordic central gravity and positions Telenor for longer value creation over time. Let me spend a moment on the acquisition of Bahnhof in Sweden, which was announced just last week. This is a strategically important expansion for us in the largest Nordic market. The acquisition is set to make Telenor the second largest fixed telecom provider in Sweden, increasing our market share from around 15% to around 27%. Bahnhof is a service provider that brings 0.5 million consumer fiber customers to our portfolio, a very strong B2B position and a differentiated brand built on privacy, security and technical expertise. The company also brings secure infrastructure capabilities, including military-grade data center assets, representing a strong fit with Telenor's focus on resilience and security. And the industrial logic is clear, strengthening our competitive position, enhancing cross-selling potential and transforming the profitability of our combined fixed businesses. And this will create a foundation for renewed growth after a 3-year period where we have peeled off layers of unprofitable fixed business due to suboptimal segment scale. Finally, let me also highlight our progress in defense and mission-critical communications. KNL is seeing substantial traction with its international expansion and has qualified for a framework agreement with the U.K. defense on Tactical Communications. While individual contracts have not been awarded yet, the opportunity is significant over time. KNL has also received pilot orders from another non-Nordic Nate country and has just been awarded a EUR 6.5 million contract with the Finnish defense forces the third so far. In Norway, Telenor has secured a 4-plus 3-year mobile agreement with the Norwegian Armed Forces with NOK 750 million in estimated revenues over the contract period. For Telenor, these wins signal growing traction within secure and resilient communication, a key strategic focus area for us. And with that, I'll hand you over to Torbjorn for the financials.

Thank you, Benedicte, and good morning, everyone. Let me start with the group financial highlights for the quarter. The main financial message is that Q2 was affected by tough comps, timing effects and the VAT provision in Norway combined with the soft home market. . Group service revenues were NOK 14.7 billion, corresponding to a decline of 0.7%. Adjusted EBITDA was around NOK 8 billion, down 4.8%. free cash flow before M&A was NOK 1.8 billion, up 13% year-on-year, while adjusted EPS was NOK 1.94, down 12% year-over-year. The CapEx to sales ratio was 14.5%, and leverage ended at 1.4x, still well below our target range. ROCE was negatively affected by the CelcomDigi impairment we booked in an in addition to the softer operating profit this quarter. ROCE, excluding associated companies was still a solid 12%. Now let me now walk you through the main drivers, starting with the top line. The service revenues for the group were in a soft patch this quarter. The organic decline was mainly driven by Nordics and Asia, partly offset by continued growth in AMP. In the Nordics, service revenues were affected by Norway, the VAT provision and timing of price migrations. In Asia, Grameenphone remained under pressure from lower voice and data revenues in a challenging macro and competitive environment. On underlying comparable basis, group organic service revenue growth was slightly positive at 0.2%. Turning to OpEx, which grew 1.5% for the Nordics, while growth in AMP as well as special projects on the HQ level drove group OpEx growth to 2.6%. The increase was mainly related to transformation, robustification and M&A activity as well as amortization of commission costs. Moving to EBITDA. The combination of the service revenue development and higher organic OpEx resulted in a 4.8% organic decline in adjusted EBITDA. However, the underlying decline is 2% when adjusting for VAT in Norway, the coastal radio transferred to the state and with like-for-like accounting in Finland. This is still an outlier quarter, reflecting several moving parts, tough comps, timing effects, transformation spend and the macro pressure in Bangladesh. There was also a negative contribution on the H2 level, reflected by the other and elimination column here. This was due to the cancellation of a procurement contract with True and higher spending on special projects this year. As a side note, we are adjusting the procurement organization as part of our reorganization to address lower income from Asia on the procurement side. Before I go into the Nordics overview, let me now zoom in on Norway, where these effects are particularly visible this quarter. On Norway, it is useful to take a step back and look at the development in more detail over a 2-year period. Compared with Q2 2024, Norway has delivered 4.6% EBITDA CAGR, and on an underlying comparable basis even when excluding revenues from the national roaming agreement. In Q2 2025, growth in Norway was 16%. We were clear back then that this was exceptional on many levels. It was driven by commercial timing effects, new but temporary roaming revenues and supported by counterseasonal swings on the COGS and OpEx lines. In Q2 this year, Norway's underlying adjusted EBITDA declined 2%. The reason is that we lapped last year's larger-than-usual back book pricing effects price uplift we made were more spread out and last year's boost from the national roaming revenue agreement went into a gradual reversal this quarter. As Benedicte said, we also had an OpEx increase partly driven by transitionally higher IT transformation spend as well as robustification projects, which included transfer upsides from infrastructure. Q2 in isolation is therefore not a clean quarter in terms of assessing the long-term earnings trajectory in Norway. Our focus is on driving commercial performance while progressing the transformation that will support a structurally lower cost base over time. For the Nordics overall, adjusted EBITDA declined 3.1% organically. Norway was the main negative contributor. Sweden contributed positively supported by subscriber growth fixed transformation and structural OpEx reductions. Denmark remained in the red on EBITDA due to amortization of commissions but made a 12 percentage point uplift quarter-on-quarter as introductory campaigns rolled off. While the near term in Denmark will be challenged by an increase in OpEx, we do expect return to sound growth in the fourth quarter. DNA improved EBITDA as transformation initiatives offset higher sales costs. On an underlying comparable basis, Nordic adjusted EBITDA increased 0.6%. And again, the OpEx level is affected by the temporary IT transformation spend, which particularly weighs on Norway and Denmark for 2026 as well as the mentioned year-on-year timing and phasing of both price changes and costs in Norway. Let me then move to Asia. In Bangladesh, Grameenphone continues to operate, which can [indiscernible] through the economy, creating pressure on consumer wallets, further intensifying price competition on the data side. EBITDA declined by 6%. Still, commercial momentum improved sequentially with 3.5 million new data subscribers and overall 2.1 million new subscribers added. To support the voice to data transition that is taking place in the country, the 700 megahertz low band rollout has started. While this increases CapEx across Q2 and Q3, we continue to manage spending diligently and with tight focus on operational and capital efficiency. The timing and strength of any recovery remains uncertain and a risk given macro sensitivity and the wider regional situation. Let us then move to the P&L, cash flow and leverage. The P&L is fairly clean this quarter, apart from the mentioned VAT item, which is spread out across fixed service revenues, OpEx and a minor effect on financial items. Reported EBITDA was impacted by workforce reductions and restructuring-related costs of NOK 337 million, which is higher than last year. You can expect more of this in coming quarters. Also, last year, we recorded NOK 0.5 billion in M&A gains from the Jottacloud merger. Net financial items improved materially year-on-year supported by higher financial income and items related to True. In total, we generated NOK 2.5 billion in net income to our shareholders. Turning to cash flow. Free cash flow before M&A was NOK 1.8 billion, an improvement of around NOK 0.2 billion year-over-year despite lower EBITDA. The improvement was supported by lower net interest paid dividends from associates and financial investments and lower dividends to noncontrolling interests. Working capital was a negative driver in the quarter, mainly due to timing effects year-over-year. Also, handset financing in previous periods was a headwind on this line. CapEx paid was around NOK 2.3 billion, and total free cash flow was NOK 2 billion including almost NOK 200 million in M&A cash flow from a true deferred installment. Now our balance sheet remains very strong. Net interest-bearing debt was NOK 51.5 billion at the end of June with leverage at 1.4x. The increase in the quarter was mainly driven by the half year dividend payment to our shareholders. Our 3-year NOK 15 billion buyback program is now well underway. We bought back 2.9 million shares in the market for a total of NOK 0.4 billion during June. Our financial position gives room to sustain shareholder returns while also pursuing disciplined value-accretive Nordic investments. Even following the recent M&A announcements, we still have significant financial flexibility for either acquisitions or additional shareholder returns. So with that, -- sorry, we're just having a little bit of a technical issue here. If you can give me the -- thank you very much. Apologies for that. Now let me turn to the financial outlook. In light of the market developments and performance in Q2, we have updated our financial outlook for 2026. The revision is driven by a combination of technical and market-related effects. The more technical effects relate to direct and indirect effects of recent transactions, such as the loss of procurement revenues in -- from True and the expected deconsolidation of connection from September. In terms of the market-related effects, the main issue is revenue momentum in parts of the Nordics, especially in Norway, where B2C ARPU has been affected by promotional activity and only modest scaling of our new services in the quarter. Finland is also improving more modestly than expected, while competition in both mobile -- sorry, with competition in both mobile and fixed and Bangladesh continues to remain uncertain. Given this, for Telenor Nordics, we now expect organic growth in both service revenues and adjusted EBITDA of flat to low single digit for 2026. Note that the guidance, as usual, excludes prior year activities, which in Q2 means that we have excluded the impact of the TV VAT provision. We continue to see Nordics CapEx to sales at around 14% for the year. For the group, the updated outlook is for flat to slightly negative organic growth in adjusted EBITDA, obviously, with Bangladesh remaining a key sensitivity. Note that our Nordic transformation activity and the profile of our commission amortization schedule is set to drive OpEx increases in the very near term. This means that the underlying EBITDA improvement in Q3 and will be temporarily held back by OpEx. However, transformation benefits will soon once again start to offset implementation costs becoming more visible from late Q4 and especially into '27 and '28. So with that, Benedicte, I will hand it back to you for the concluding remarks.

Thank you very much, Torbjorn. To sum up, was a bit softer financially, but it was also a quarter with clear strategic progress. We advanced heavy lifting on IT simplification strengthen our Nordic broadband position, progress in defense and continue to sharpen both the portfolio and the organization. As Torbjorn said, we also remain financially strong with leverage well below our target range, and the buyback program is well underway. As we move through this soft patch, our focus is firmly on execution, improving commercial momentum, delivering transformation benefits and turning this year's strategic actions into stronger cash flow and returns over time. Our long-term ambitions remain unchanged, and we are confident in the direction we are taking. I'll now hand back to Frank moderate the Q&A. Please, Frank.

Thank you, Benedicte. [Operator Instructions] Operator, please go ahead.

[Operator Instructions] Our first question comes from Andrew Lee with Goldman Sachs.

I had a question clearly around the guidance cut today. The share prices [indiscernible] the investors have lost confidence in the structural growth outlook for some of the Nordic markets and also in execution. So I had a question around the hits on both those things. On the structural side, the certainties in Norway is we run out of road on the more for more growth and the value-added services. It's worked well for the last few years but it hasn't -- it's not working this year. Is that just poor execution? Or is there a structural problem of us running at a road there? And then also the execution side, the cost of transformation cost reduction is always a black box, but it's unprecedented the amount of EBITDA headwind in that this IT stack transformation is generating to your business. Investors haven't seen that before across the sector. Could you just tell us what the total cost of the stack transformation is and what the anticipated boost to Nordic EBITDA is, so people understand that better because it's confused a lot of people.

Okay. I'll try and pick up on -- so it's the structural in Norway, right? On the...

Yes. The value-added. Yes, exactly.

Okay. Firstly, I'd just like to repeat that the service revenue in Norway, adjusting for the VAT effect and the business transfer even with the different timing effects of price increases this year compared to last year was at -- or grew by 0.6%. What we saw in the second quarter was that there was much more rotation in the market and much more campaigns, which means that our ARPU was still growing, but had a lower growth than it had in previous quarter. We still have our more-for-more strategy. And on top of that, we have our services first layer on OP. However, the services first products that we've launched, the first one in November of last year and the second now in March have not picked up with the pace that we anticipated, but we are just adjusting and fine-tuning that and hope to be able to prove that, that also is a viable way forward for Telenor continued, of course, with a more-for-more concept as well. On the transformation side, would you like to cover that, Torbjorn?

Sure. I think the way to think about the -- we're not going to the specifics about the cost themselves. But Clearly, what is driving a lot of cost right now is the number of IT people. We have involved in, one, the IT -- the sort of system out in Norway. That needs to be done by the end of this year as well as the implementation of the BSS stack in Finland -- sorry, in Denmark. And those 2 things in combination with running 2 systems in practice in parallel brings additional cost. And of course, when you look at the efficiency savings, that will come on the back of that into next year and beyond. That is, of course, that those costs that we are now running to implement those systems will be taken out. So this is -- the IT stack is not just important from a cost perspective. It is also an important part of our sort of customer journey because the old, what I call technology debt systems, often stand in the way of good customer journey. And this is, of course, important for our customer experience to ensure that we have proper future-proof systems that will deliver a whole new level of customer service in future.

I'll just add a tiny bit to that, which has to do with the paying off on robustification which is one of the key elements of the transformation as well. And in light of the global context, if you could put it that way. One of the reasons for winning, for instance, that the Norwegian defense contract is that we have stepped up on the reversification and resilience of our networks as well.

I might just add before you go to the next question of the element as to the aspect you raised, Andrew, on whether or not this type of development that caused by the IT transformation in terms of the EBITDA growth which, by the way, on underlying basis is down 2% year-on-year on a very tough comp is unprecedented. I think what is also unprecedented is what we're actually doing in terms of creating a cloud native incumbent telco in Norway. I don't think many operators out there have been doing what we are doing now with the combination of going to a public cloud and private sovereign clouds production stack for the IT part. So I think that's fair to add, and that will bring significant benefits in the years ahead. Next question, please.

Our next question comes from Christoffer Bjørnsen with DNB Carnegie.

Can you hear me? Yes?

Yes.

There's some IT issues here this morning. Yes. So I just wanted to follow up on the competitive dynamics. It seems like it deem across like Andrew said, the different telcos in the region and your report this increased competition and the commentary on the Tele2 call was also quite strong on that front. So could you maybe give some more color on what you're seeing across the different countries? Is this like a new norm of higher competition and what is driving that? And if not, what will change going forward? And then I have a follow-up, please.

It's always difficult to kind of have forward-looking statements and particularly on markets. And I guess that's what's hurting us a little bit also this quarter that we didn't see that a very good and stable 3-player market actually turned more rotational in Norway with much more aggressive campaigning. And -- but we saw some recent improvements at the -- towards the end of the quarter. So that's the story for Norway. In Sweden, it's a 4-player market, as you know, and is quite stable and seems to continue that way. In Denmark, the -- which has been a highly -- maybe the most competitive market in Europe, we've seen an improvement in the way the pricing and the market is behaving. And then I guess, in Finland, which has also been confirmed by some of the other market players, the price shock we got in Q4, which has -- remember, we have a 12-month binding period for new customers take some time to recover, but it seems to be stabilizing and recovering from that price shock.

Right. And then my follow-up is more on the dividend and the buyback program. You're obviously making some big moves with Bahnhof and other deals and you're having these tractor headwinds to the cash flow and the earnings this year and next. Can you just help us understand how to think about the buyback program and the dividend going forward, if you're still committed to those? I think when you launched the buyback program, you said gave you flexibility, if anything, to increase it if you did not do any big deals. I just wanted to kind of get confirmation that there's no risk to the program on the dividend from the near-term weakness you're seeing now in all these deals. So just getting a little questions on that from investors.

The short answer is no. We have a 16-year track record on paying dividends. So there's a strong fundamental commitment to the metal dividends, both in the Board and in the management. So...

Increased dividend, not only dividend.

Increasing dividends. Thank you, which is now being complemented by a share buyback program, which is well underway. And of course, the buyback program, a, it returns capital to shareholders. But b, it also reduces a little bit the absolute amount of dividends that we pay out, which is important given that we have sold off businesses, which, of course, where the cash is no longer coming in. Then with the acquisitions we are making, this will, of course, add to the financial profile going forward. We think they are good acquisitions that will support our development in the years ahead. And then we always have good discussions with our own board on call it, alternative uses of the financial strength we have and that is something that you would have to wait for until we have that discussion with our Board and communicate something. But there is a strong commitment to compensating our shareholders in a good way.

And the flexibility, if anything, was more on the upside rather than downsizing the program, the buyback program if you do these big deals.

As I said, now we are -- we have kicked off on the NOK 15 billion program. Of course, in sizing up these things, it's -- one is, of course, returning a good amount of capital to the shareholders, and that needs to be conducted in accordance with market regulations. But yes, there's always flexibility to add additional shareholder innovation. But that's something that I'm not going to preflag here. That is something that we would have to communicate as and when we make a decision.

I think we need to move to the next question, which seems to be from Felix to Nordea.

Our next question comes from Felix Henriksson from Nordea.

Very good. I'll actually follow up on Christoffer's question on capital allocation more broadly. I'd like to discuss about the financial and operational headroom that you still have left for larger, maybe mobile M&A, given that you've now announced 3 acquisitions on the fixed side of things, you have the buyback going, and it seems like the earnings trends are worsening. Because obviously, there's been speculation about mobile market consolidation in the Nordics. And historically, it seems like you've been quite open to that. So just curious to hear your thoughts about your both financial headroom as well as operational capacity to do anything larger on top of what you've already announced?

Yes. I think we will not do anything that will not benefit our shareholders from a financial perspective in the areas of M&A. And I think the 3 or actually 4 proof points you have from this quarter is a testament to that. And that would also, of course, apply if we were to pursue any other consolidation efforts or acquisitions within our markets. And of course, as we -- Torbjorn just said, answering Christoffer's questions, we have a very strong balance sheet at the moment. We have initiated a share buyback program, which will take down the number of shares and give higher returns per share. And if we cannot apply or invest in things that we think yields more or to the investors. Of course, we will suggest to our Board that we in some way or form repatriate that to our shareholders if that occurs.

Okay. I hope that answers your question.

Our next question comes from Nick Lyall with Berenberg.

I hope you can hear me.

Yes.

It was to come back to Norway, please, if possible. You mentioned competition in broadband, I think, in your comments. So possibly there's lots of moving parts in the Norwegian numbers this quarter. But could you tell us where we find if anything in your KPIs, it looks like mobile is moving. So could you just help us and tell us exactly what the effects are on the numbers and what you've penciled into guidance? And then just a very quick sort of clarification on the last point. You didn't mention Celcom Digi as a stake in the last point. Can you just remind us what the criteria are for you thinking about sale or keeping the asset, please?

Sure. So when it comes to the Norwegian market, what we saw in Q2, which, of course, is -- you can think of also as a little bit of a bridge to -- which is a bridge to the outlook for the year is that we saw a lot stronger promotional development in B2C and mobile in Norway, which led to higher churn and then pressure on ARPU growth. Q2 is typically a very promotional quarter with summer campaigns, et cetera. And they were quite aggressive campaigns this quarter. And that when you do get rotational churn, perhaps into lower price points, that has a carry-on effect, which affects the outlook for the year. Then as Benedicte talked about, we had a bit of a slower start to our value-added services. We had growth in -- on the security products, but less so on the entertainment products. So we're now, of course, taking steps to to recompose that package. So those were the main things that was affecting the performance in Norway. On the broadband side...