Press release
July 18, 2025
Strengthening our core business
Second quarter summary
- Revenue amounted to SEK 19.8 billion (20.2) and increased 1.2% like for like.
- Service revenue like for like increased 1.0% driven by continued strong momentum in Sweden and the Baltics.
- Adjusted EBITDA like for like increased 6.2% driven by service revenue growth and lower operational expenses across most markets as a result from the Change program implemented in the fourth quarter of 2024.
- Operating income increased to SEK 3.4 billion (3.0).
- Total net income declined to SEK 2.2 billion (4.9) and total EPS declined to SEK 0.50 (1.19), as 2024 included a capital gain from divesting the operations and network assets in Denmark.
- CAPEX excluding spectrum and leases declined to SEK 3.0 billion (3.5) driven by a lower investment level in mainly Other operations as well as in Finland and Norway.
- Free cash flow increased to SEK 2.3 billion (1.9) driven mainly by adjusted EBITDA growth and lower cash CAPEX.
- Cash flow from operating activities declined to SEK 6.7 billion (7.3).
- Leverage was 2.09x compared to 2.18x in the previous quarter.
- Dividend of SEK 0.50 per share was paid to shareholders.
- The outlook for 2025 is reiterated.
- On July 1, the divestment of TV and Media was completed.
- On July 17, Telia Company announced that it has signed a memorandum of understanding (MoU) with the Republic of Latvia, Latvenergo and LVRTC to sell all of its shares in fixed network operator Tet and mobile network operator LMT. The transaction is expected to close in 2026.
- On July 18, Telia Company announced a recommended public offer to the shareholders of Bredband2 AB (publ) to tender all shares, listed on Nasdaq First North Growth Market, at a price of SEK 3.25 in cash per share, corresponding to SEK 3.1 billion.
First half year summary
- Revenue amounted to SEK 39.8 billion (39.5) and increased 2.2% like for like.
- Service revenue like for like increased 1.4% driven by Sweden, the Baltics and Other operations.
- Adjusted EBITDA like for like increased 6.4% due to service revenue growth and lower operational expenses across all units.
- Operating income increased to SEK 7.0 billion (5.7).
- Total net income declined to SEK 2.9 billion (5.6) and total EPS declined to SEK 0.63 (1.34), as 2024 included a capital gain from divesting the operations and network assets in Denmark.
- CAPEX excluding spectrum and leases declined to SEK 5.8 billion (6.5) driven by a lower investment level across the footprint.
- Free cash flow increased to SEK 4.0 billion (1.6) from mainly increased adjusted EBITDA generation and improved working capital contribution.
- Cash flow from operating activities increased to SEK 13.0 billion (10.8).
CEO comment
"During the quarter, we continued to execute on our commitment to invest in our core business and actively manage our asset portfolio to become a simpler, faster and more efficient Telia. Operational momentum is healthy in Sweden and the Baltics, customer satisfaction is improving, and cost efficiencies are materializing across the group as a result of last year's change program. Meanwhile, we are taking measures to improve revenue trends in Norway and Finland.
Commercial progress
We are continually innovating within our core to create value and ensure Telia remains the trusted partner that the Nordic and Baltic societies need in an uncertain world. In this respect, we are seeing progress throughout our footprint, and in June we welcomed the Swedish Armed Forces to Telia and Ericsson's NorthStar 5G innovation program to test new solutions in military communications, logistics and security.
In Sweden, service growth accelerated to +2.8%, despite continued drag from copper legacy services, and was again led by fixed services including our award-winning TV and streaming offerings. The offer to acquire Bredband2, with its highly complementary value-for-money brand in the fixed broadband market, is an opportunity to build further convergence-led growth, and is underpinned by a clear plan to extract synergies.
In Finland, trends were similar to the previous quarter, as growth in mobile and consumer broadband did not fully offset headwinds in enterprise. Service revenue declined -0.7%. We are taking actions to improve commercial trends, and while seeing early signs of improvement, much work remains. Meanwhile, we continue to drive cost efficiencies and simplification, resulting in strong EBITDA growth of +9.8%.
Norway saw expected headwinds, with lower wholesale and TV revenue driving service revenue decline of -3.9%. We are executing on a comprehensive agenda to return our fixed business to growth, including a new organization that both reduces costs and places fixed services in a separate division, with the aim of improving end-to-end quality and customer experience. At the end of the quarter, we reached a new multi-year agreement for TV 2 content, which is now again available to Telia's customers.
Lithuania continued to deliver mid-single digit service revenue growth, led by +7.1% growth in mobile and +4.0% in fixed. In May, we announced a partnership to trial Lithuania's first 5G standalone network at the Baltic Sea port of Klaipeda. Estonia grew more modestly, with both mobile and fixed services contributing positively.
Following wide-ranging discussions on the optimal ownership structure for our businesses in Latvia, we signed a Memorandum of Understanding with our partner, the Latvian State, after the quarter to divest Telia's shares in the two operating companies at a price that both parties consider to be fair. The transaction is expected to close in 2026. This agreement addresses the strategic objective of active asset portfolio management and follows the closing of the TV & Media divestment on July 1.
Sustainability progress
Telia scored an A in CDP's latest Supplier Engagement Assessment, ranking among the world's top companies in engaging with suppliers on climate action. Telia suppliers representing 64% of greenhouse gas emissions in our supply chain have now set Science Based Targets or equivalent. Similarly, Telia has recently become Estonia's first operator to equip nearly a quarter of its mobile masts with solar parks, adding another source of renewable energy while boosting the resilience of Telia's infrastructure.
Financial progress
With efficiencies materializing, and Sweden delivering its forecasted progress, earnings growth remained close to our plan, albeit with headwinds in Norway. Service revenue growth of +1.0% is somewhat below our longer-term ambitions. Meanwhile, EBITDA growth of +6.2% is well in line with, or even somewhat ahead of, what we expected three months ago, which shows that our actions are having the anticipated effect. Strong cash flow in the quarter of SEK 2.3 billion, and a reduction of leverage to 2.09x, is further evidence of increased financial health and testament that we are delivering on our promises.
Looking ahead
Our full-year outlook is unchanged, including service revenue growth of around 2%, EBITDA growth of at least 5%, CAPEX below SEK 14 billion and free cash flow around SEK 7.5 billion. Despite the strong EBITDA growth in the second quarter, we still expect third-quarter EBITDA growth to be somewhat lower than the growth we expect for the full year, with a re-acceleration in the final quarter.
I am encouraged to see our teams in Sweden and the Baltics maintaining growth momentum, and by the broad set of initiatives underway in Finland and Norway. Telia is adapting to a faster pace of change and continuous efficiency improvements, which are here to stay.
I want to thank our customers, shareholders and employees for their ongoing support and trust. We are determined to stay disciplined, deliver on our commitments, and be a trusted and progressive partner for the digital societies we serve."
Patrik Hofbauer
President & CEO
In the CEO comment, all growth rates disclosed are based on the "like for like" definition and EBITDA refers to adjusted EBITDA, unless otherwise stated. See definitions for more information. Free cash flow outlook statements are based on assumptions of normalized cash CAPEX for spectrum of SEK 650 million per year.
This information is information that Telia Company AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Market Act. The information was submitted for publication, through the contact person set out below, at 07:00 CET on July 18, 2025.
NOTES TO EDITORS
For more information, contact Tobias Gyhlénius, Head of Group Communications, on +46 (0)771 77 58 30, visit our newsroom and follow us on LinkedIn. To download our logo, high-resolution images of Telia leaders, offices and solutions, or B-roll footage for editorial use, visit our media bank.
ABOUT TELIA
Telia Company (STO: TELIA) is a leading telecommunications operator in the Nordic and Baltic regions. Every day, we deliver world-class connectivity and communications services to millions of customers through our sustainable and secure networks - enabling people, businesses and societies to thrive and grow. Our unique position at the center of digitalization shapes our ambition to be a trusted and progressive partner and gives us our purpose: to reinvent better connected living. Find out more at www.teliacompany.com.
Forward-Looking Statements
Statements made in the press release relating to future status or circumstances, including future performance and other trend projections are forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements due to many factors, many of which are outside the control of Telia Company.
