Sweden's Telia Q3 revenue rises on Nordic, Baltic growth
Sweden's Telia Q3 revenue rises on Nordic, Baltic growth
Overview
Sweden telecom operator's Q3 revenue rose yr/yr, driven by service revenue growth in Nordics, Baltics
Adjusted EBITDA for Q3 grew 2.9% like for like, supported by service revenue and lower expenses
Company plans to cut about 900 positions, targeting SEK 1 bln annual gross savings by 2028
Outlook
Telia raises 2026 adjusted EBITDA growth outlook to 3-4% from around 3%
Company now expects 2026 free cash flow of at least SEK 9 bln, up from around SEK 9 bln
Telia targets SEK 1 bln in annual gross savings from further localization and workforce reduction by 2028
Result Drivers
SERVICE REVENUE GROWTH - Co said Q3 service revenue growth was mainly driven by strong performance in Sweden, Norway and the Baltics
LOWER OPERATIONAL EXPENSES - Co attributed EBITDA growth to reduced operational expenses, including cost discipline and temporary items
WORKING CAPITAL CONTRIBUTION - Co said strong free cash flow was supported by positive working capital contribution
Company press release: ID:nWkr3F0V5P
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales |
| SEK 21.30 bln |
|
Q3 Net Income |
| SEK 2.90 bln |
|
Q3 Adjusted Free Cash Flow |
| SEK 7.60 bln |
|
Q3 Free Cash Flow |
| SEK 3.70 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 9 "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 (publ) is SEK47.50, about 3.1% above its October 21 closing price of SEK46.05
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 20 three months ago
Reuters Recommended Reads
Oct 20 - Sweden's Tele2 Q3 sales rise on service revenue growth, cuts guidance
Oct 19 - Truckload carrier Werner Enterprises sees Q3 revenue up to $951 million
Oct 21 - Finland's Elisa slightly misses Q3 revenue estimates, maintains 2026 capex forecast
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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.)