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TELIA - Telia AB News Story

SEK36.64 0.1  0.3%

Last Trade - 5:00pm

Sector
Telecoms
Size
Large Cap
Market Cap £12.67bn
Enterprise Value £21.01bn
Revenue £7.51bn
Position in Universe 55th / 1832

BRIEF-Telia targets annual opex reductions of 2 percent in 2019-21

Tue 26th March, 2019 6:07am
March 26 (Reuters) - Telia Company AB  TELIA.ST :
    * SAYS TELIA COMPANY REITERATES FULL YEAR OPERATIONAL FREE
CASH
FLOW OUTLOOK FOR 2019 WHICH IS EXPECTED TO REACH SEK 12.0-12.5
BILLION, AND AMBITION IS TO SUSTAIN AND GROW THIS LEVEL ALSO FOR
2020 AND 2021
    * SAYS AMBITION ON REDUCING NET WORKING CAPITAL HAS BEEN
INCREASED
FROM SEK 5 BILLION TO SEK 6 BILLION, OF WHICH SEK 3.6 BILLION
HAS BEEN REALIZED 2017-2018
    * SAYS AS STATED IN CONNECTION TO Q4 RESULTS 2018 AND NOW
BASED ON
JANUARY AND FEBRUARY TRADING, TELIA COMPANY REITERATES THAT
EBITDA DEVELOPMENT FIRST HALF OF 2019 WILL BE WEAKER THAN SECOND
HALF
    * SAYS CASH FLOW SYNERGIES FROM GET/TDC ACQUISITION IN
NORWAY IS
EXPECTED TO REACH A FULL RUN-RATE OF NOK 800 MILLION (PREVIOUSLY
NOK 700 MILLION) BY END OF 2021
    * SAYS FOR Q1 OF 2019, UNDERLYING ORGANIC EBITDA DECLINE IS
EXPECTED TO BE SLIGHTLY MORE THAN CORRESPONDING DECLINE IN Q4 OF
2018
    * SAYS REALIZATION WILL BE FRONT-END LOADED WITH AN AMBITION
OF
NOK 450 MILLION FOR 2020.
    * SAYS THIS IS DRIVEN BY A COMBINATION OF THREE MAIN
COUNTRIES BUT
IS NOT IMPACTING FULL YEAR OPERATIONAL FREE CASH FLOW OUTLOOK
FOR 2019
    * SAYS OPERATIONAL EXPENSES OF APPROXIMATELY SEK 24 BILLION
ARE
EXPECTED TO BE REDUCED BY AROUND 2 PERCENT ANNUALLY 2019-2021 ON
A NET BASIS
    * SAYS PART OF OPERATIONAL EXPENSE REDUCTION IS DRIVEN FROM
IMPLEMENTATION OF NEW OPERATING MODEL
    * SAYS IMPACT WILL BE GRADUAL WITH A TARGET OF REDUCING
COSTS BY
10-15 PERCENT BY 2022 ON A COST BASE OF AROUND SEK 6 BILLION
    * SAYS CASH FLOW SYNERGIES FROM GET/TDC ACQUISITION IN
NORWAY IS
EXPECTED TO REACH A FULL RUN-RATE OF NOK 800 MILLION (PREVIOUSLY
NOK 700 MILLION) BY END OF 2021

Source text for Eikon:  ID:nWkrNgqGk 
Further company coverage:  TELIA.ST 

 (Stockholm Newsroom)
 ((stockholm.newsroom@thomsonreuters.com; +46 (0)8-700 10 10;))
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