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Telia Company AB (SE:TELIA)
:TELIA
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Telia Company AB
(OTC:TELIA)
74Outperform
Telia Company AB (TELIA) vs. S&P 500 (SPY)
Market Cap
$139.20B
Dividend Yield5.13%
Average Volume (3M)10.65M
Price to Earnings (P/E)20.1
Beta (1Y)0.11
Revenue Growth-1.98%
EPS Growth2245.91%
CountrySE
Employees15,040
SectorCommunication Services
Sector Strength83
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.53
Shares Outstanding3,932,109,400
10 Day Avg. Volume9,318,432
30 Day Avg. Volume10,654,173
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
$35.37Price Target Upside-2.61% Downside
Rating ConsensusHold
Number of Analyst Covering5
Telia Company AB Business Overview & Revenue Model
Company DescriptionTelia Company AB is a leading telecommunications provider headquartered in Stockholm, Sweden. It operates primarily in the Nordic and Baltic regions, offering a wide range of services including mobile and fixed-line telephony, broadband, and digital television. The company serves both consumer and business segments, providing innovative communication solutions designed to meet the evolving needs of its customers. Telia is committed to delivering high-quality connectivity and digital services to enhance the digital experiences of its users.
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 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
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.75
Positive
Balance Sheet
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.70
Positive
Cash Flow
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.80
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| 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
Positive
36.32
Price Trends
35.23
Positive
33.43
Positive
32.02
Positive
Market Momentum
0.20
Positive
57.69
Neutral
44.50
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 36.32 is above the 20-day moving average (MA) of 35.77, above the 50-day MA of 35.23, and above the 200-day MA of 32.02, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 57.69 is Neutral, neither overbought nor oversold. The STOCH value of 44.50 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | kr97.15B | 24.53 | 16.69% | 4.95% | 1.16% | 5.52% | |
74 Outperform | $139.20B | 20.14 | 9.32% | 5.13% | -1.98% | 2245.91% | |
61 Neutral | $21.11B | ― | -20.56% | ― | 1.25% | -20115.92% | |
60 Neutral | $14.09B | 6.89 | -3.35% | 3.69% | 2.42% | -36.25% |
* Communication Services Sector Average
Performance Comparison
SE:TELIA
Telia Company AB
36.32
11.07
43.82%
SE:TEL2.B
Tele2 AB
140.05
43.17
44.56%
SE:SINCH
Sinch AB
24.99
0.83
3.44%
Telia Company AB Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: 3.15%|
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.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.