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TELIA - Telia AB News Story

SEK37.25 0.4  1.1%

Last Trade - 5:00pm

Sector
Telecoms
Size
Large Cap
Market Cap £12.80bn
Enterprise Value £21.17bn
Revenue £7.52bn
Position in Universe 55th / 1828

Sweden's Telia expects larger drop in core profit this quarter

Tue 26th March, 2019 8:01am
STOCKHOLM, March 26 (Reuters) - Telia Company  TELIA.ST 
expects a larger drop in core profit in the first quarter
compared to the final quarter of 2018, it said on Tuesday ahead
of a capital markets day in Stockholm.
    "For the first quarter of 2019, the underlying organic
EBITDA decline is expected to be slightly more than the
corresponding decline in the fourth quarter of 2018," Telia said
in a statement, noting it had now seen January and February
trading performance. 
    It added that the slowdown was driven by its three main
markets of Sweden, Norway and Finland but that it was not having
an impact on the operational free cash flow outlook for 2019.   
 
    The company reiterated that it expected its EBITDA
performance to improve in the second half of 2019. 
    Telia said in January that profits in Sweden, its biggest
market, would remain under pressure this year and that it would
cut operating costs in the country by around 3 percent to offset
falling fixed-line income.  urn:newsml:reuters.com:*:nL8N1ZP0JZ
    The operator said on Tuesday it expected to cut group
operational expenses by around 2 percent annually in 2019-2021. 
    The company, which competes with Sweden's Tele2  TEL2b.ST 
and Norway's Telenor  TEL.OL , is seeking new ways to grow in
its traditional Nordic markets, with some analysts seeing
content buying as a possible source of revenue.
    Telia repeated on Tuesday that it expects free cash flow
from continuing operations, excluding licenses and spectrum fees
and dividends from associated companies, to grow to 12.0-12.5
billion crowns this year from 10.8 billion in 2018. 
    Sweden accounts for half of Telia's core earnings and nearly
half of its revenue.

 (Reporting by Helena Soderpalm, editing by Johannes Hellstrom
and Kirsten Donovan)
 ((helena.soderpalm@thomsonreuters.com; +46 8 700 10 15; Reuters
Messaging: helena.soderpalm.reuters.com@reuters.net))
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