Telia : Presentation Q1 2024

Telia Company AB

Equities

TELIA

SE0000667925

Integrated Telecommunications Services

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Latest news about Telia Company AB

Chart Telia Company AB

Income Statement Evolution

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Quarterly earnings - Rate of surprise

Sector Other Integrated Telecommunications Services

Market Closed - Nasdaq Stockholm Other stock markets 11:29:33 2024-05-03 am EDT			5-day change	1st Jan Change
25.24 ^SEK	+0.80%		-1.60%	-1.90%

Apr. 25	Transcript : Telia Company AB, Q1 2024 Earnings Call, Apr 25, 2024
Apr. 25	Telia's Q1 core earnings slightly below expectations	RE

April 25, 2024 at 03:00 am EDT

Telia Company Q1 2024

April 25, 2024

Continued solid Telco performance

Solid operational momentum

Service revenue growth in Telco continued and

TV and Media performance further improved

Continued CX progress

Positive NPS trend, mobile ARPU increased in most markets and mobile churn remained at low levels

Network leadership confirmed

Continued momentum on 5G deployment with Sweden at nearly 90% and with legacy phase-out on track

Outlook confirmed

Starting the year in line with our plan

Q1 Highlights

Solid financial Telco trend continued
- Mobile growth of +2.6% and fixed increased +3.1%
- Consumer growth of +3.8% whereas Enterprise was neutral
- EBITDA increased +2.1%, despite one-off costs in Sweden

EBITDA from continuing operations grew +4.6%, with reduced losses in TV and Media
Structural OFCF of SEK 0.4bn despite SEK 0.4bn in pension refund phased from Q1 to Q2
Leverage of 2.43x in Q1 with Danish proceeds to reduce leverage by ~0.2x
Divestment of Telia Denmark closed in early April
Capital markets update preliminarily planned for September

+2.7%

Service revenue growth

(Telco operations, LFL)

+2.1%

Adjusted EBITDA growth

(Telco operations, LFL)

0.4bn

Structural part of OFCF

(In SEK)

Telco operations

Sweden financials

Service revenue

Reported currency, in SEK millions, like for like growth

+0.4% +1.8% +2.2% +2.8% +3.5%

7,413

7,579

7,594

7,816

7,676

Service revenue growth continued to improve
Positive on both Consumer (+5.0%) and Enterprise (+0.3%)
Mobile -0.1%, Broadband +5.5%, and TV +23%

Service revenue split

Reported currency, in SEK millions, like for like growth

+2.8%	+4.1%	+4.3%	+4.7%	+5.6%
6,983	7,175	7,212	7,468	7,372

430 404 382 348 304

Q1 23	Q2 23	Q3 23	Q4 23	Q1 24
		Copper legacy*	Underlying

Copper legacy headwind of ~SEK 130m
Underlying service revenue growth improved again sequentially driven by Consumer

Adj. EBITDA

Reported currency, in SEK millions, like for like growth

-0.3% +0.2% +4.0% +0.8% -1.7%

3,313	3,351	3,516	3,435	3,256

Q1 23

Q2 23

Q3 23

Q4 23

Q1 24

Adj. EBITDA

EBITDA impacted by ~SEK 100m pension refund re-phasing and ~SEK 50m write-down of receivables

* Copper legacy = end customer revenue from telephony & xDSL

Sweden KPIs

Mobile postpaid subs. and ARPU

Subscriptions '000, ARPU in SEK

246	247	246	250	246

3,891

3,905

3,920

3,890

3,905

Q1 23	Q2 23	Q3 23	Q4 23	Q1 24
		Postpaid ex M2M			ARPU

Subscriber base increased somewhat supported by Consumer
ARPU remained unchanged as pricing was offset by product mix

Broadband subs. and ARPU

Subscriptions '000, ARPU in SEK

324 333 336 341 346

1,298 1,311 1,318 1,327 1,334

Q1 23	Q2 23	Q3 23	Q4 23	Q1 24
		Fiber and FWA			Copper	ARPU

Subscriber base stable as fiber and FWA compensated for copper decline
ARPU growth supported by reduced campaign levels, with fiber growing +10%

TV subs. and ARPU

Subscriptions '000, ARPU in SEK

232

218

199 198 204

994 1,004 1,017 1,034 1,051


Q1 23	Q2 23	Q3 23	Q4 23	Q1 24
		Subscriptions		ARPU

Subscriber base continued to grow, up 6% y-o-y
APRU growth of 17% driven by pricing

Subs. base decreased, predominantly in Consumer

Churn remained below last year

‒

‒ Consumer ARPU growth remained at double digit and Enterprise was flat

Postpaid ex M2M

ARPU

Finland

Service revenue

Reported currency, in SEK millions, like for like growth

+2.3%	+2.3%	+1.9%	+2.1%	+1.9%
3,367	3,478	3,548	3,686	3,434


Q1 23	Q2 23	Q3 23	Q4 23	Q1 24
	Consumer		Enterprise		Other

Service revenue growth stable around +2%
Mobile growth increased to +4.4% supported by Consumer
Fixed declined -1.2% driven by telephony and business solutions, partly due to regulation

Adj. EBITDA

Reported currency, in SEK millions, like for like growth

+1.2%	+2.2%	+10%	+11%	+3.9%
	1,258	1,392	1,246	1,249
1,197

Q1 23

Q2 23

Q3 23

Q4 23

Q1 24

Adj. EBITDA

EBITDA grew +3.9% from service revenue flow through, despite regulatory impact
Less tailwind from energy compared to previous quarters (SEK 20m in Q1 vs. ~SEK 80m in Q4)

Mobile postpaid subs. and ARPU

Subscriptions '000, ARPU in EUR

						19.2		19.4
				18.6
		18.4
17.9

2,604	2,600	2,590	2,566	2,541

	Q1 23		Q2 23		Q3 23		Q4 23		Q1 24

Norway

Service revenue

Reported currency, in SEK millions, like for like growth

+3.8%	+5.4%	+5.8%	+4.2%	+2.2%
3,198	3,085	3,382	3,188	3,117


Q1 23	Q2 23	Q3 23	Q4 23	Q1 24
	Consumer		Enterprise		Other

Continued solid development on mobile (+4.7%) driven by ARPU and wholesale
Fixed declined somewhat driven by broadband and business solutions
Negative impact from invoicing fee regulation

Adj. EBITDA

Reported currency, in SEK millions, like for like growth

+2.7% +14% +11% +8.9% +5.9%

		1,978
1,681	1,697	1,705	1,692

Q1 23

Q2 23

Q3 23

Q4 23

Q1 24

Adj. EBITDA

EBITDA growth supported by service revenue growth and resource reduction

Mobile postpaid subs. and ARPU

Subscriptions '000, ARPU in NOK

286	295	299	294	294


1,899	1,896	1,893	1,885	1,883

Q1 23		Q2 23	Q3 23	Q4 23	Q1 24
		Postpaid ex M2M			ARPU

Subscriber base flat in the quarter
ARPU improvement (+2.8%) driven by Consumer pricing

Lithuania & Estonia

Lithuania

Reported currency, in SEK millions, like for like growth

+9.9% +6.5% +9.9% +4.3% +4.5%+13% +10% +19% +0.7% +5.5%

1,009	1,052	1,124	1,074	1,058	499	554	511

			483	483

Q1 23	Q2 23	Q3 23	Q4 23	Q1 24	Q1 23	Q2 23	Q3 23	Q4 23	Q1 24
	Service revenue			Adj. EBITDA

Continued mobile growth (+7.6%) and fixed also grew (+1.9%)
EBITDA growth of 5.5%, reflecting rise in service revenue and operational leverage

Estonia

Reported currency, in SEK millions, like for like growth

+5.8%	+8.3%	+7.2%	+6.2%	+1.3%	+10%	+14%	+15%	+11%	+5.7%
	857	888	890			401	435	401	404
821	834	382

Q1 23	Q2 23	Q3 23	Q4 23	Q1 24	Q1 23	Q2 23	Q3 23	Q4 23	Q1 24
	Service revenue			Adj. EBITDA

Service revenue growth slowed with mobile (-0.7%) and fixed (+2.3%) driven by phasing of pricing
Measures taken to support growth from Q2 onwards
EBITDA growth continued to outpace service revenue

TV & Media

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Telia Company AB published this content on 24 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 April 2024 06:58:16 UTC.

Transcript : Telia Company AB, Q1 2024 Earnings Call, Apr 25, 2024	Apr. 25
Telia's Q1 core earnings slightly below expectations	Apr. 25	RE
Telia Company AB Reports Earnings Results for the First Quarter Ended March 31, 2024	Apr. 25	CI
EMEA Morning Briefing : Shares Seen Lower; Earnings, U.S. GDP Data in Focus	Apr. 25	DJ
Telia Company AB Approves Dividend, Payable on April 17, 2024, August 6, 2024, November 5, 2024, and February 12, 2025, Respectively	Apr. 10	CI
Policy push for carbon removal credits lures finance, aviation	Apr. 05	RE
Spotify: new CFO recruited by Saab	Apr. 04	CF
Sweden’s Telia Concludes Sale of Danish Operations to Norlys	Apr. 02	MT
Norlys a.m.b.a. completed the acquisition of Operations and network assets of Telia in Denmark.	Apr. 01	CI
Telia Company Announces an Upcoming Change to the Group Executive Management Team	Mar. 12	CI
Telia Company AB Announces Pricing of Its Cash Tender Offer in Respect of its Outstanding EUR 650,000,000 3.875% Notes Due 1 October 2025 and EUR 500,000,000 3.00% Notes Due 7 September 2027	Mar. 11	CI
Telia Launches Tender Offer For Four Series of Notes	Mar. 04	MT
InCoax Networks Names New Chief Commercial Officer	Mar. 01	MT
Telia Secures Regulatory Approval in Denmark for Sale of Telia Denmark	Feb. 28	MT
TH1NG, Valokuitunen Enter 18-month Partnership for IoT Services in Finland	Feb. 15	MT
UBS Trims Telia PT, Maintains Buy Recommendation	Feb. 13	MT
TELIA : UBS remains Buy, adjusts its target	Feb. 13	CF
Global markets live: LVMH, Intel, Tesla, Salesforce, Eli Lilly...	Jan. 26
TELIA : A safe dividend which should return to a growth path	Jan. 26
U.S. Futures Down, European Stocks Mixed After U.S. GDP, ECB Decision	Jan. 26	DJ
Transcript : Telia Company AB, Q4 2023 Earnings Call, Jan 26, 2024	Jan. 26
Telia Q4 core earnings in line, eyes profit growth in 2024	Jan. 26	RE
Telia Company AB Provides Earnings Guidance for the Year 2024	Jan. 26	CI
Telia Company AB Proposes Dividend for the Year 2023, Payable on April 17, 2024, August 6, 2024, November 5, 2024 and February 12, 2025	Jan. 26	CI
Telia Company AB Reports Earnings Results for the Full Year Ended December 31, 2023	Jan. 26	CI

Duration

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Telia Company AB is the leading Scandinavian telecommunications operator. Net sales (including intragroup) break down by activity as follows: - telecommunications services (85.8%): mobile telephony (19.8 million subscribers at year-end 2022), fixed-line telephony (0.9 million), cable television transmission (3 million), broadband Internet access (2.9 million), etc.; - media services (9.6%): production and broadcasting of audiovisual content (TV4, C More and MTV channels); - other (4.6%). Net sales are distributed geographically as follows: Sweden (46.4%), Finland (18.7%), Norway (16.5%), Denmark (5.8%), Lithuania (5.5%), Estonia (4%) and other (3.1%).

Sector

Integrated Telecommunications Services

Calendar

2024-07-18 - Q2 2024 Earnings Release

Related indices

STOXX EUROPE 600 (EUR)

More about the company

More financial data

TELIA : A safe dividend which should return to a growth path

January 26, 2024 at 10:40 am EST

INTERVIEW - Telia CEO Allison Kirkby: "Our heavy debt burden is still weighing on the share price"

July 20, 2023 at 06:23 am EDT

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Trading Rating

Investor Rating

ESG Refinitiv

A-

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Sell

Buy

Mean consensus

OUTPERFORM

Number of Analysts

Last Close Price

25.24 SEK

Average target price

28.57 SEK

Spread / Average Target

+13.19%

Consensus

Estimates Revisions

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