Sweden's Telia sees 3% like-for-like growth in 2026 core earnings (updated)

Telia AB

29/01/2026 06:21

Adds share move in paragraph 2, analyst comment in paragraphs 6

Telia expects 3% like-for-like growth in 2026 adj. EBITDA

Q4 adj. EBITDA rose to 7.69 billion Swedish crowns, missing consensus

Falling profits in Finland weighed on group results

Free cash flow was 'extremely strong' in the quarter, CEO says

By Alessandro Parodi

Jan 29 (Reuters) - Swedish telecom operator Telia TELIA.ST said on Thursday it expected 2026 adjusted core earnings to grow around 3% on a like-for-like basis, broadly in line with market estimates, after fourth-quarter results were weighed down by heavy competition in Finland.

Shares of Telia, which provides telecommunication services in the Nordic and Baltic countries, fell more than 4% in early Stockholm trading and were on track for their largest one-day drop since early April 2025.

It reported a 3.7% like-for-like rise in adjusted operating earnings before depreciation and amortisation (EBITDA) to 7.69 billion Swedish crowns ($874.07 million) for the quarter, missing analysts' forecast of 7.82 billion crowns in a poll provided by Telia.

In Finland, adjusted EBITDA fell 6.2% on a like-for-like basis due to lower non-connectivity revenue in the enterprise segment, which services companies and the public sector, Telia said.

"There is super intense competition, especially in Finland," CEO Patrik Hofbauer told Reuters.

Analysts from Citi, in a note to clients, said the investor focus would likely be on the weak EBITDA performance in Finland.

"We invested a bit more in Norway, and we invested a bit more in Finland as well," Hofbauer said, while highlighting an "extremely strong" cash flow in the quarter.

Telia's quarterly free cash flow was 2.4 billion Swedish crowns, well above market expectations of around 900 million.

In 2024, the company had presented a restructuring plan that would include cutting 3,000 jobs or about 15% of its workforce that year. The aim was to reduce costs by 2.6 billion crowns annually and rein in cash flows.

The group proposed an annual dividend of 2.05 crowns per share, slightly higher than the 2 crowns expected by analysts.

It reaffirmed its medium-term targets until 2027, first announced in 2024, which include average annual growth of 4% in its adjusted EBITDA and 2% in service revenue on a like-for-like basis. It also aims to grow its yearly free cash flow to at least 10 billion crowns by the end of the period.

($1 = 8.7979 Swedish crowns)

(Reporting by Alessandro Parodi in Gdansk, editing by Milla Nissi-Prussak)

((alessandro.parodi@thomsonreuters.com))