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TELIA - Telia AB News Story

SEK36.64 0.1  0.3%

Last Trade - 14/05/21

Large Cap
Market Cap £12.76bn
Enterprise Value £21.14bn
Revenue £7.54bn
Position in Universe 55th / 1832

UPDATE 1-Sweden's Telia expects larger drop in core profit this quarter

Tue 26th March, 2019 10:40am
(Adds CEO comment, analyst comment, shares)
    By Helena Soderpalm
    STOCKHOLM, March 26 (Reuters) - Telia Company  TELIA.ST 
warned investors that its core profit would fall more in the
first three months of the year than in the last quarter of 2018
because of a slowdown in its main Nordic markets.
    The company, which competes with Sweden's Tele2  TEL2b.ST 
and Norway's Telenor  TEL.OL , is seeking new ways to grow in
its main markets, having invested heavily in media content.
    Last year it announced a $2.6 billion deal to buy TDC's
Norwegian business as well as the $1 billion purchase of
Sweden's Bonnier Broadcasting.*:nL8N1UD0LD
    Telia is now focused on supplying a full range of mobile,
fixed line and TV operations in its seven Nordic and Baltic
markets after retreating from central Asia, a previous source of
    "We are investing heavily for growth and fighting to get
back to service revenue growth across our markets," Chief
Executive Johan Dennelind told investors and journalists at a
capital markets day in Stockholm, adding the acquisitions were
on track and that he was "very happy" with the Norwegian deal.
    Telia said in a statement on Tuesday it now expects cash
flow synergies from that acquisition of 800 million Norwegian
crowns ($93.95 million) by the end of 2021, up from a previous
forecast of 700 million. 
    Telia's net sales in local currencies, excluding
acquisitions, were roughly unchanged at 83.6 billion ($9.1
billion) in 2018 compared to 2017. 
    "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, noting it had now seen its January and February trading
    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.*:nL8N1ZP0JZ
    The operator said on Tuesday it expected to cut group
operational expenses by around 2 percent annually in 2019-2021.
    "Telia's CMD headline cost targets look modest," Jefferies,
which has a buy recommendation on the share, said in a note. 
    The company repeated 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.
    Telia shares fell 0.7 percent to trade at 41.67 crowns at
1033 GMT.
 ($1 = 9.2458 Swedish crowns)
($1 = 8.5151 Norwegian crowns)

 (Reporting by Helena Soderpalm
Editing by Keith Weir)
 ((; +46 8 700 10 15; Reuters
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