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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

UPDATE 1-Telia says won't hit 2020 outlook due to coronavirus

Thu 26th March, 2020 12:53pm
* Telia says coronvirus outbreak hitting TV & Media unit
    * Says 2020 outlook no longer within reach
    * Cuts dividend proposal
    * Shares drop 7%

 (Adds background, detail, comments)
    STOCKHOLM, March 26 (Reuters) - Swedish telecom operator
Telia Company  TELIA.ST  said on Thursday it no longer expected
to reach its 2020 forecast for core earnings and cashflow due to
effects from the coronavirus outbreak hitting its TV & Media
unit.
    Telia, which beefed up its TV & Media business last year
with the purchase of Bonnier Broadcasting, parent of Sweden's
biggest commercial channel TV4, also said its board had decided
to cut its dividend proposal to 1.80 crowns per share from 2.45
crowns previously.
    Telia shares fell by 7.0% at 1245 GMT following the news.
    "The effects from the pandemic will have a material negative
financial impact primarily on the TV & Media unit," acting CEO
Christian Luiga said in a statement, adding the impact on its
other businesses were so far limited.
    "Despite an increased TV consumption...Telia Company has
witnessed a rapid decline in the advertising revenues."
    The company also said that it was seeing the widespread
cancellations of sporting events weighing on pay-TV revenues.
    Telia said it currently assumed full-year EBITDA (earnings
before interest, tax, depreciation and amortisation) for TV &
Media to land between break-even and a 500 million profit,
compared with 1.5 billion crowns ($149 million) in 2019.
    The company, which had previously forecast group adjusted
EBITDA to grow 2-5% in 2020 at stable currencies, said it was
too early to issue an updated outlook, but that it would do so
as soon as possible provided the current high uncertainty.    
    
($1 = 10.0429 Swedish crowns)

 (Reporting by Johannes Hellstrom, editing by Anna Ringstrom and
Johan Ahlander)
 ((johannes.hellstrom@thomsonreuters.com; +46850242388; Reuters
Messaging: johannes.hellstrom.reuters.com@reuters.net))
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