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TELIA - Telia AB News Story

SEK35.72 -0.0  -0.1%

Last Trade - 5:00pm

Sector
Telecoms
Size
Large Cap
Market Cap £12.44bn
Enterprise Value £20.73bn
Revenue £7.59bn
Position in Universe 59th / 1829

UPDATE 1-Telia to cut costs as new CEO streamlines operations

Fri 29th January, 2021 7:29am
(Adds detail, background)
    STOCKHOLM, Jan 29 (Reuters) - Nordic telecom operator Telia
 TELIA.ST  said on Friday it was aiming to cut costs by 4
billion crowns ($478 million) through 2025, as its new chief
executive seeks to boost returns.
    Since taking over the top job at Telia last year, Chief
Executive Allison Kirkby has been streamlining operations,
sparking investor expectations that she can spur growth and
shareholder returns.
    Telia, which reported fourth-quarter core results in line
with its guidance, said it expected earnings and service revenue
to be flat or grow by low single digits in 2021.
    "The final quarter of 2020 and the start of 2021 has
continued to be challenging for societies and businesses, across
the Telia footprint and indeed across the globe," Kirkby said in
a statement.
     The company said it was targeting improved EBITDA (earnings
before interest, tax, depreciation and amortisation) of 3
billion crowns by 2023 and of 5 billion by 2025, while reducing
operational expenses by 2 billion crowns by 2023 and 4 billion
crowns by 2025. 
    Quarterly-adjusted EBITDA was 7.48 billion Swedish crowns
($894 million) compared with 7.91 billion a year earlier.
    Telia had said last week that adjusted EBITDA would be
broadly in line with its outlook of around 30.5 billion crowns
for 2020, implying around 7.28 billion for the quarter.
    It also said results would be hit by a 7.8 billion crown
impairment charge related to business in Finland.  urn:newsml:reuters.com:*:nL1N2JV0E6
    Fourth-quarter revenues at the firm rose 2.7% to 23.5
billion crowns. 
    
    ($1 = 8.37 Swedish crowns)

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