Telia Company AB (TELIA) AI Stock Analysis

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Telia Company AB

(OTC:TELIA)

Rating:74Outperform

Price Target:―

Telia's overall score reflects strong operational performance and strategic initiatives, such as the climate transition plan and divestment of non-core businesses. The company shows robust cash flow generation and reasonable valuation metrics. However, challenges in certain markets and high leverage are areas of concern. The dividend yield is a positive feature for income-focused investors.

Telia Company AB (TELIA) vs. iShares MSCI Sweden ETF (EWD)

Market Cap

$142.35B

Dividend Yield4.9%

Average Volume (3M)7.72M

Price to Earnings (P/E)20.9

Beta (1Y)0.11

Revenue Growth-1.98%

EPS Growth2245.91%

CountrySE

Employees15,040

SectorCommunication Services

Sector Strength88

IndustryTelecommunications Services

Share Statistics

EPS (TTM)0.53

Shares Outstanding3,932,109,400

10 Day Avg. Volume6,194,804

30 Day Avg. Volume7,720,006

Financial Highlights & Ratios

PEG Ratio-18.17

Price to Book (P/B)2.53

Price to Sales (P/S)0.00

P/FCF Ratio14.45

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$35.71

Price Target Upside-3.84% Downside

Rating ConsensusHold

Number of Analyst Covering4

Telia Company AB Business Overview & Revenue Model

Company DescriptionTelia Company AB (publ) provides communication services in Sweden, Finland, Norway, Denmark, Lithuania, Estonia, and Latvia. The company offers mobile, broadband, television, and fixed-line services to businesses, individuals, families, and communities. It provides networking, cloud and security, mobility, enterprise mobile network, contact center, managed mobility services, collaboration solutions, enterprise telephony, Internet of Things (IoT), carrier ethernet, dedicated internet access, wavelengths, IP Transit, dark fiber, colocation, and IoT connectivity solutions, as well as broadcasting and content production services, and customer financing services. The company markets its products and services under the Telia, halebop, Fello, TV4, C More, MTV, MyCall, OneCall, Phonero, Call me, Mit tele, Diil, Lmt Okarte, Telia Latvija, Cloudy, Tet, and Ezys brands for logistics, public transport, manufacturing, retail, utilities, building, and public sector industries. It has 18.1 million mobile subscriptions, 1.0 million fixed telephony subscriptions, 2.9 fixed million broadband subscriptions, and 3.4 million TV subscriptions. The company was formerly known as TeliaSonera AB (publ) and changed its name to Telia Company AB (publ) in April 2016. Telia Company AB (publ) was founded in 1853 and is headquartered in Solna, Sweden.

How the Company Makes MoneyTelia Company AB generates revenue through several key streams. The primary sources of income include mobile services, where the company offers voice and data plans to consumers and enterprises, and fixed-line services, which encompass broadband internet and telephony. Additionally, Telia earns from digital TV and content services, providing television packages and streaming options. The business sector also contributes significantly, with Telia offering tailored ICT solutions, cloud services, and managed services to corporate clients. Strategic partnerships and collaborations with technology providers and other telecommunications firms further bolster its revenue, enhancing its service offerings and market reach. These combined efforts allow Telia to maintain a strong revenue base across its operational regions.

Telia Company AB Earnings Call Summary

Earnings Call Date:Apr 24, 2025

(Q1-2025)

% Change Since: 5.48%|

Next Earnings Date:Jul 18, 2025

Earnings Call Sentiment Neutral

Telia's Q1 2025 earnings call highlighted steady service revenue and EBITDA growth, successful strategic divestments, and positive environmental initiatives. However, challenges remain in the Norwegian and Finnish markets, with specific impacts from contract losses and subscriber base declines.

Q1-2025 Updates

Positive Updates

Service Revenue Growth

Service revenue growth in Q1 was close to 2%, with improvements driven by Sweden, which grew by 2%, and the Baltic markets.

EBITDA Growth

EBITDA growth was close to 7% this quarter, with strong contributions from Sweden, Finland, and Lithuania.

Climate Transition Plan

Telia's Climate Transition Plan, published in March, aims to achieve net zero by 2040.

Free Cash Flow

Free cash flow was SEK 1.7 billion in the quarter, with a target of SEK 7.5 billion for the full year.

Leverage Decrease

Leverage is declining, now standing at 2.18x EBITDA, despite paying SEK 2 billion dividend every quarter.

Sweden Network Award

Telia's network in Sweden was recognized as a top 5 network globally by umlaut.

TV and Media Business Sale

Telia agreed to sell its TV and Media business to Schibsted Media, allowing greater focus on core telecom operations.

Telia Towers Performance

Telia Towers has grown EBITDA by over 25% in the past 3 years, managing over 8,000 sites.

Negative Updates

Norway Service Revenue Challenges

Service revenue growth in Norway remained somewhat negative as mobile growth of 1% was more than offset by a decline in fixed service revenue.

Finland Subscriber Base Decline

Telia Finland continues to face a decline in its postpaid subscriber base, with service revenue growth at minus 2%.

ICE Wholesale Contract Impact

The migration of the ICE wholesale contract in Norway is expected to worsen EBITDA decline before improving.

Macro and Competitive Pressures

Some customer segments, especially in B2B, are showing pressure from macroeconomic factors and competitive pricing.

Company Guidance

In the Telia Company's Q1 2025 results presentation, the company reported a service revenue growth of nearly 2%, aligning with their full-year outlook and midterm ambitions. This was primarily driven by a 2% growth in Sweden and additional contributions from the Baltic markets. The company's EBITDA increased by approximately 7%, slightly surpassing their full-year growth target, with significant contributions from Sweden, Finland, and Lithuania. The sale of the TV and Media business to Schibsted Media was highlighted as a strategic milestone, allowing Telia to focus more on its core telecom business. The Climate Transition Plan, aiming for net zero by 2040, was also emphasized. Telia's CapEx is projected to remain below SEK 14 billion, with a rolling 12-month basis already within this frame. Free cash flow reached SEK 1.7 billion for the quarter, with a targeted SEK 7.5 billion for the full year. The company's leverage has decreased to 2.18x EBITDA, despite a SEK 2 billion dividend payment each quarter.

Telia Company AB Financial Statement Overview

Summary

Telia demonstrates strong operational and cash flow performance, but faces challenges with revenue growth and high leverage. While profitability margins are solid, the company should focus on reducing debt levels to enhance financial stability. Continued emphasis on cash flow generation will support long-term strategic investments and debt management.

Income Statement

Positive

Telia's TTM (Trailing-Twelve-Months) gross profit margin is healthy at 50.6%, indicating efficient cost management. However, the net profit margin stands at 8%, showing room for improvement in profitability. Revenue growth is slightly negative at -1.4% from the previous annual period, suggesting a need for stronger top-line growth. The EBIT margin is strong at 13.5%, and the EBITDA margin is robust at 35.2%, demonstrating solid operational performance.

Balance Sheet

Positive

Telia's balance sheet reflects a high debt-to-equity ratio of 1.60, pointing to significant leverage which increases financial risk. The return on equity (ROE) is moderate at 12.5%, indicating reasonable profitability for equity holders. The equity ratio is at 28.5%, showing a stable capital structure but with a high level of liabilities relative to assets.

Cash Flow

Positive

Telia's free cash flow has grown by 33.7% from the previous annual period, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is high at 3.43, indicating efficient cash conversion from earnings. The free cash flow to net income ratio is 1.40, suggesting good cash flow relative to earnings, supporting future growth and debt servicing.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
87.89B	89.13B	88.78B	90.83B	88.34B	89.19B
	Gross Profit
44.52B	55.65B	40.22B	30.88B	30.03B	32.16B
	EBIT
11.90B	10.51B	4.98B	9.86B	9.61B	-9.04B
	EBITDA
30.91B	35.11B	31.17B	14.02B	40.15B	14.06B
	Net Income Common Stockholders
6.99B	7.08B	303.00M	-14.16B	11.68B	-22.48B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.39B	10.93B	19.85B	9.18B	20.45B	10.96B
	Total Assets
196.25B	204.27B	226.47B	222.79B	237.03B	226.68B
	Total Debt
89.13B	94.38B	112.57B	53.72B	40.58B	47.63B
	Net Debt
80.75B	84.57B	101.32B	46.85B	26.22B	39.50B
	Total Liabilities
136.73B	144.91B	169.47B	155.12B	153.48B	162.73B
	Stockholders Equity
55.85B	55.44B	53.47B	64.24B	80.73B	62.84B
Cash Flow		Free Cash Flow
9.77B	7.31B	9.21B	8.09B	11.73B	15.11B
	Operating Cash Flow
23.97B	21.20B	24.67B	24.00B	27.38B	28.82B
	Investing Cash Flow
189.00M	4.11B	-22.06B	-9.94B	-10.91B	-3.47B
	Financing Cash Flow
-19.97B	-27.34B	2.65B	-21.78B	-10.60B	-23.10B

Telia Company AB Technical Analysis

Technical Analysis Sentiment

Positive

Last Price37.14

Price Trends

50DMA

35.82

Positive

100DMA

34.39

Positive

200DMA

32.51

Positive

Market Momentum

MACD

0.41

Positive

RSI

59.06

Neutral

STOCH

26.51

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:TELIA, the sentiment is Positive. The current price of 37.14 is above the 20-day moving average (MA) of 36.61, above the 50-day MA of 35.82, and above the 200-day MA of 32.51, indicating a bullish trend. The MACD of 0.41 indicates Positive momentum. The RSI at 59.06 is Neutral, neither overbought nor oversold. The STOCH value of 26.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:TELIA.

Telia Company AB Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TELIA	74 Outperform	$142.35B	20.89	9.32%	4.90%	-1.98%	2245.91%
Sector *	61 Neutral	$14.59B	5.85	-4.31%	3.69%	2.76%	-30.36%
0QE6		kr99.71B	25.49	16.69%	4.63%	―	―
CLCMF		$2.28B	―	-20.56%	―	―	―

* Communication Services Sector Average

Performance Comparison

SE:TELIA

Telia Company AB

37.14

11.64

45.66%

GB:0QE6

Tele2 AB

143.52

45.14

45.88%

CLCMF

Sinch AB

2.87

0.53

22.65%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.