Sweden's Telia Company Q2 revenue rises; reiterates 2026 outlook
Sweden's Telia Company Q2 revenue rises; reiterates 2026 outlook
Overview
Sweden telecom operator's Q2 revenue rose 5% yr/yr to SEK 20.7 bln
Adjusted EBITDA grew 3.4% like for like, driven by service revenue and lower expenses
Total net income increased to SEK 2.4 bln from SEK 2.2 bln
Outlook
Telia reiterates 2026 outlook: service revenue growth, like for like, around 2%, adj EBITDA growth, like for like, around 3%
Company expects CAPEX excluding spectrum and leases below SEK 13 bln, free cash flow around SEK 9 bln
Telia expects lower EBITDA growth in Q3, higher growth in Q4 due to project phasing
Result Drivers
SERVICE REVENUE GROWTH - Co said service revenue rose 2.8% like for like, driven mainly by strong development in Sweden, Norway and the Baltics
COST REDUCTIONS - Co said lower operational expenses contributed to adjusted EBITDA growth across all markets
REGIONAL PERFORMANCE - Co highlighted customer base growth in Sweden, turnaround progress in Norway, and strong demand in Lithuania as supporting results
Company press release: ID:nWkr8XQqz3
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales |
| SEK 20.70 bln |
|
Q2 Net Income |
| SEK 2.40 bln |
|
Q2 Adjusted Free Cash Flow |
| SEK 6.20 bln |
|
Q2 Free Cash Flow |
| SEK 2.20 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 11 "hold" and 5 "sell" or "strong sell"
The average consensus recommendation for the integrated telecommunications services peer group is "buy."
Wall Street's median 12-month price target for Telia Company AB is SEK49.00, about 8.1% above its July 16 closing price of SEK45.32
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 21 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)