Telia Company Ab ( (TLSNF) ) has released its Q1 earnings. Here is a breakdown of the information Telia Company Ab presented to its investors.
Telia Company AB is a prominent telecommunications provider operating in the Nordic and Baltic regions, offering a range of services including mobile, broadband, and TV solutions. In the first quarter of 2025, Telia Company reported a 3.5% increase in revenue to SEK 20,035 million, with service revenue rising by 1.9%. The company also saw a significant 6.7% growth in adjusted EBITDA, reaching SEK 7,803 million, while operating income surged by 36.4% to SEK 3,602 million. However, net income declined to SEK 692 million due to a non-cash impairment related to discontinued operations. Free cash flow improved significantly to SEK 1,723 million, and the leverage ratio decreased to 2.18x.
Key financial highlights include the divestment agreement of its TV and Media business to Schibsted Media for SEK 6.55 billion, which impacted the classification of these operations as discontinued. The company maintained a dividend of SEK 0.50 per share and reiterated its outlook for 2025, projecting service revenue growth of around 2% and adjusted EBITDA growth of at least 5%. Regionally, Telia experienced varied performance, with Sweden and the Baltics showing growth, while Finland and Norway faced challenges due to macroeconomic conditions and competitive pressures.
In Sweden, Telia achieved a 2.2% increase in revenue, driven by service revenue growth and cost efficiencies. Finland saw a decline in service revenue by 1.9%, despite efforts to simplify operations. Norway’s revenue decreased by 1.0%, with challenges in the TV and broadband sectors. The Baltic regions, particularly Lithuania and Estonia, demonstrated strong growth in service revenue and EBITDA, supported by strategic partnerships and cost management.
Looking ahead, Telia Company remains focused on its core telecom business, with strategic divestments and operational efficiencies expected to strengthen its financial position. The company anticipates continued growth in service revenue and EBITDA, with a focus on enhancing customer experience and expanding its digital offerings across its markets.