Telia, the Swedish multinational telco, has reported Q3 revenue decreased 0.9 per cent to SEK 21,749 million (€1,904.4m), and like for like, revenue increased 0.9 per cent.

Service revenue decreased 0.6 per cent to SEK 18,820 million and like for like, service revenue increased 1.2 per cent. For the telco operations, service revenue increased 1.1 per cent on a like for like basis. Operating income increased to SEK 3,892 million. Total net income increased to SEK 2,511 million and total EPS increased to 0.59 SEK (0.46).

Revenue decreased 0.2 per cent to SEK 65,403 million and like for like, revenue increased 0.4 per cent for the 9 moht period from January to September 2024.

Service revenue increased 1.4 per cent to SEK 56,857 million and like for like, service revenue increased 2 per cent. For the telco operations, service revenue increased 2.1 per cent on a like for like basis. Total net income increased to SEK 8,120 million

Patrik Hofbauer, Telia President & CEO, commented: “Results for the third quarter were in line with our expectations. Service revenue and EBITDA grew slightly, compared to our strong Q3 last year. Mobile service revenue growth in all markets outpaced the decline in fixed legacy revenue, and customer satisfaction improved further. We also launched a change programme targeting radical simplification, streamlined processes and improved ways of working, with annual savings of at least SEK 2.6 billion, and we set new mid-term financial ambitions at our Investor update in September.”

“Service revenue growth in Sweden continues to be driven by Consumer which grew +3.9 per cent, despite continued copper headwinds. This was mainly driven by TV growth of +22.4 per cent and Broadband growth of +4.1 per cent. The customer satisfaction trend continues in the right direction, and we are proud to report that Telia topped the SKI customer satisfaction survey among the main telco mobile brands. Fello made a strong debut, securing second place amongst all brands.”

“Swedish Enterprise service revenue declined -3.9 per cent due to a weaker macro environment and licensing revenue from one customer last year which did not recur. We launched a new mobile portfolio for small businesses, bundled with a security service, which is part of our strategy to enhance our offerings and drive ARPU. Additionally, we signed the first agreements to sell real estate in Sweden linked to the fixed infrastructure modernisation.”

“In Finland, service revenue was stable and, like in Sweden, the Consumer business is growing across both mobile and fixed services, while Enterprise is being held back by the macro environment, regulatory headwinds and legacy pressures. Simplification continues with the divestment of our webhosting business and the ramp-down of the e-invoicing service.”

“Norway had an expected slight decline in service revenue and EBITDA, as discussed in connection with our Q2 results. The Mobile Consumer customer base has had five consecutive months of growth, as our offerings are well received, partly offset by the ending of one Enterprise contract this quarter. Meanwhile, Phonero won the EPSI customer satisfaction survey for the third consecutive year, and we entered into collaboration agreements with several important Enterprise customers including the Norwegian defence.”

“Lithuania reported modest growth in both service revenue and EBITDA despite having had an outstanding Q3 last year on the back of the NATO summit. In Estonia, momentum improved slightly with all core product areas contributing. The Estonian Defense Forces tested Telia’s 5G private network solution, which ensures mission critical data communication independently of availability of electricity and land-based internet.”

“TV and Media’s digital transition continued to proceed at speed, with 27 per cent growth in digital advertising and 13 per cent growth in direct-to-consumer streaming revenue. A strong first quarter for TV4 Media Manager, a new platform facilitating advertising purchases for smaller customers, contributed to the growth. EBITDA improved, despite content costs still being higher than the same period last year.”

Looking ahead, Hofbauer said: “We are determined to simplify our operations, drive innovation, achieve sustainable growth, and to reach service revenue and adjusted EBITDA CAGR of 2 per cent and 4 per cent, respectively, as well as a Free cash flow of at least SEK 10 billion by 2027.”

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Categories: Articles, Business, Results, Telco

Tags: sweden, telco, telia