Press release
October 23, 2025
Executing on our plan
Third quarter summary
- Revenue amounted to SEK 19.9 billion (20.0) and increased 1.1% like for like.
- Service revenue increased 1.0% like for like driven by continued strong momentum in Sweden and the Baltics.
- Adjusted EBITDA increased 4.4% like for like driven by profitable service revenue growth and lower operational expenses across most markets.
- Operating income increased somewhat to SEK 4.0 billion (3.9).
- Total net income amounted to SEK 2.5 billion (2.5) and total EPS increased to SEK 0.60 (0.59).
- CAPEX excluding spectrum and leases declined to SEK 2.8 billion (2.9) mainly driven by a lower investment level in Norway.
- Free cash flow increased to SEK 2.9 billion (1.4) mainly driven by higher working capital contribution and lower interest paid, partly offset by increased cash CAPEX.
- Cash flow from operating activities increased to SEK 7.1 billion (5.3).
- Leverage was 1.93x compared to 2.09x in the previous quarter.
- Dividend of SEK 0.50 per share was paid to shareholders.
- Outlook for 2025 was upgraded: Free cash flow to around SEK 8 billion (previously around SEK 7.5 billion) and CAPEX to around SEK 13 billion (previously below SEK 14 billion).
- 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.
- 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.
Nine months summary
- Revenue amounted to SEK 59.7 billion (59.5) and increased 1.8% like for like.
- Service revenue increased 1.3% like for like driven by Sweden, the Baltics and Other operations.
- Adjusted EBITDA increased 5.7% like for like due to profitable service revenue growth and lower operational expenses.
- Operating income increased to SEK 11.0 billion (9.5).
- Total net income declined to SEK 5.4 billion (8.1) and total EPS declined to SEK 1.23 (1.93).
- CAPEX excluding spectrum and leases declined to SEK 8.6 billion (9.4) driven by a lower investment level across the footprint.
- Free cash flow increased to SEK 6.9 billion (3.0) mainly supported by increased adjusted EBITDA generation and working capital contribution, partly offset by higher cash CAPEX.
- Cash flow from operating activities increased to SEK 20.1 billion (16.0).
CEO comment
"We are now more than a year into the execution of our plan to become a simpler, faster and more efficient Telia. We have healthy operational momentum in Sweden and the Baltics, and are executing on our plan to strengthen both revenue and overall performance in Norway and Finland. Our country-led organization is delivering improved service quality, customer satisfaction and continued strong employee engagement across our markets. We have taken initial steps to improve performance and are encouraged by the results seen so far. We are now fully focused on driving continuous efficiency gains across our operations in the coming years. At Telia, we want to be the best in everything we do. This is our responsibility as an industry leader, and the only way to ensure we continue to grow, create value, and be the most relevant, trusted and progressive partner for our customers.
Commercial progress
In Sweden, service revenue growth remained healthy at 2.0%, despite continued drag from copper legacy services, led by over 5% growth in fixed service revenue in our consumer business, driven by both TV and broadband. Customer additions were strong across mobile, broadband and TV. This is driven by our attractive offerings, and we aim to extend these to new consumer groups next year through our proposed acquisition of Bredband2, which we announced in July. Our expectation to close this transaction in Q1 2026, at the latest, remains unchanged.
In Finland, revenue was stable in the quarter, while EBITDA growth was solid. Our plan to improve performance in Finland includes stabilizing our mobile market share, turning around our SME business and improving profitability. We see progress in all three areas, most clearly in growth in consumer and SME mobile customer numbers and an increased EBITDA margin year-to-date. This is still only a start, but we are moving in the right direction.
Norway is seeing expected headwinds, with service revenue decline of 3.5% mainly due to lower mobile wholesale traffic. However, mobile end-user service revenue is growing and, supported by price adjustments, we expect overall service revenue to stabilize in the coming quarters. Our brand portfolio remains strong, in particular Phonero, which again topped the EPSI survey for most satisfied enterprise customers. Our fixed business remains challenged for now, but we have a clear plan to improve performance in the coming 12 months and are fully focused on executing on this.
Lithuania continued the solid performance seen in recent quarters, with mid-single digit revenue growth and high-single digit EBITDA growth. A back-end IT transformation within B2C was completed in the quarter, and the positive effects helped driving customer satisfaction further up from already high levels. CAPEX efficiency remains solid and our rolling 12-month adjusted EBITDA less CAPEX is now more than 30% higher than two years ago.
Estonia improved the growth trends from the previous quarter, driven by mobile and fixed services and above all by ICT revenue from enterprises and the public sector.
Sustainability progress
Telia suppliers representing 65% of greenhouse gas emissions in our supply chain have now set Science Based Targets approved by SBTi or equivalent. The reach of our digital inclusion initiatives continues to grow significantly and Telia has reached 3.5 million individuals since 2021, meaning we already have surpassed our target for 2027, and we will consequently update our program and targets for coming years. As of this quarter, the Telia Safe app, which provides online security and privacy, fraud protection and personal data security functionalities, is available to customers in every Telia market.
Financial progress
Efficiencies continue to materialize, and the 4.4% growth in EBITDA is in line with the expectations we flagged three months ago. Service revenue growth, at 1.0% for the Group, is below our ambitions of around 2%, owing to the previously flagged headwinds in Norway and Finland. We have plans in place to improve this over time, although we will prioritize simplification and profitability over non-profitable revenue. Cash flow was somewhat stronger than we expected and has covered our dividend payments in the first three quarters. Along with the completed divestment of TV and Media, this resulted in leverage at 1.93x at the end of the quarter, slightly below our 2.0-2.5x target range. The SEK 3 billion payment for the proposed Bredband2 acquisition is ahead of us.
Looking ahead
We upgrade our Free cash flow outlook to around SEK 8 billion for this year, from previously around SEK 7.5 billion, indicating full dividend coverage. We remain disciplined in our capital expenditures and as a consequence we now anticipate our full year booked CAPEX to be around SEK 13 billion, from previously below SEK 14 billion.
In an uncertain and hyper-digitalized world, Telia's secure and sustainable networks have never been more important. We see strong customer demand for high-security business and mission critical connectivity and infrastructure solutions. Every day, we are committed to living up to the trust that our customers, shareholders and societies place in us, delivering on what we say and setting our ambitions as high as possible."
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. The information was submitted for publication, through the contact person set out below, at 07:00 CET on October 23, 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.