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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

UPDATE 1-Telia says Swedish market tough as Q1 core profit meets forecast

Thu 25th April, 2019 7:40am
(Adds detail, background)
    STOCKHOLM, April 25 (Reuters) - Telecoms firm Telia Company
 TELIA.ST  said on Thursday it still saw challenging conditions
in Sweden, as it posted first-quarter core earnings in line with
market expectations and repeated its forecast for 2019.
    Telia, which competes with Sweden's Tele2  TEL2b.ST  and
Norway's Telenor  TEL.OL , warned investors last month its core
profit would fall more in the first quarter than in the last
quarter of 2018 due to a slowdown in its main Nordic markets.
 urn:newsml:reuters.com:*:nL8N21D1NT
    Earnings before interest, tax, depreciation and amortisation
(EBITDA) totalled 7.47 billion Swedish crowns ($792.2
million)excluding non-recurring items, up from 6.50 billion
crowns a year earlier. 
    Telia said the implementation of IFRS 16 accounting
standards had a positive impact of around 710 million crowns on
results.
    Excluding the impact, adjusted EBITDA, on a like-for-like
basis regarding exchange rates, acquisitions and disposals, fell
4 percent from a year earlier.
    Analysts had expected the group to post core EBITDA of 6.71
million crowns, according to a Reuters poll.  urn:newsml:reuters.com:*:nL5N2254D7
    Telia repeated 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. 
    The company expects free cash flow from continuing
operations, excluding licences 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.
    It also reiterated it expects its EBITDA performance to
improve in the second half of 2019.
    Telia is seeking new ways to grow in its main markets, and
last year announced a $2.6 billion deal to buy TDC's Norwegian
business as well as the $1 billion purchase of Sweden's Bonnier
Broadcasting. 
    ($1 = 9.4299 Swedish crowns)

 (Reporting by Helena Soderpalm; Editing by Mark Potter)
 ((helena.soderpalm@thomsonreuters.com; +46 8 700 10 15; Reuters
Messaging: helena.soderpalm.reuters.com@reuters.net))
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