Latest news with #TLSNF
Yahoo
19-07-2025
- Business
- Yahoo
Telia Company AB (TLSNF) Q2 2025 Earnings Call Highlights: Strong EBITDA Growth Amidst ...
EBITDA Growth: 6.2% overall, with strong performance in Sweden and Finland, but weaker in Norway. Free Cash Flow: SEK2.3 billion, supported by a dividend from Tet in Latvia. Leverage: Reduced to 2.09 times, aided by EBITDA growth and proceeds from the Marshall investment. Sweden Consumer Segment Growth: 2.3%, driven by strong TV performance and mobile subscriber intake. Sweden EBITDA Growth: Approximately 8%, supported by profitable growth and change program tailwinds. Finland EBITDA Growth: 10%, driven by business simplification and change program execution. Norway Service Revenue and EBITDA: Both trending down due to lower mobile wholesale revenue and broadband/TV headwinds. Lithuania EBITDA Growth: 11%, with strong service revenue growth in mobile and fixed sectors. Estonia Service Revenue and EBITDA Growth: 3% to 4%, with good cash flow conversion. CapEx: Well within the frame of less than SEK14 billion per year. EBITDA Margin Expansion: 200 basis points, in line with margin expansion goals. Operating Expenses: Declined by 5.1%, driven by the change program. Net Debt Reduction: Decreased by SEK1.5 billion, with leverage now below 2.1 times. Warning! GuruFocus has detected 4 Warning Signs with TLSNF. Release Date: July 18, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Telia Company AB (TLSNF) reported strong EBITDA growth of 6.2%, slightly ahead of expectations, driven by cost efficiencies and strong performance in Sweden and Finland. The company maintained its full-year outlook, with financials largely as expected, and reiterated its commitment to free cash flow above SEK10 billion by 2027. Telia's strategic focus on convergence is yielding results, with a 5% annual growth in average revenue per household and a reduction in churn for converged customers. The acquisition of Bredband2 is expected to strengthen Telia's consumer business in Sweden, with anticipated synergies of over SEK200 million within three years. Telia's balance sheet continues to improve, with leverage reduced to 2.09 times, supported by strong free cash flow and proceeds from divestments. Negative Points Service revenue growth was somewhat below the full-year ambition due to a slowdown in Norway, impacting overall performance. Norway faced challenges with both service revenue and EBITDA trending down, attributed to lower mobile wholesale revenue and headwinds in broadband and TV. The company anticipates a softer Q3 before growth picks up again in Q4, with Norway expected to continue facing headwinds in the near term. Telia's mobile end-user service revenue trends in Sweden, Finland, and Norway are lagging behind peers, indicating room for improvement. The company faces regulatory scrutiny for its acquisition of Bredband2, with potential challenges in obtaining competition authority approval. Q & A Highlights Q: Can you elaborate on your cost-cutting outlook and the implications of the Latvian asset sale? A: (Patrik Hofbauer, CEO) The Latvian asset sale is part of our strategy to simplify our organization, not an exit from the Baltics. We continue to drive efficiencies without a large-scale cost-cutting program like last year, but we are benchmarking to ensure competitiveness. Q: Regarding the bid on Bredband2, do you expect any regulatory hurdles, and what synergies do you foresee? A: (Patrik Hofbauer, CEO) We see Bredband2 as complementary, with low market share overlap, and expect regulatory approval. (Eric Hageman, CFO) We anticipate SEK200 million in annual synergies, split evenly between revenue and cost savings. Q: Can you explain the strong net mobile subscriber intake in Sweden and the unexpected EBITDA growth in Q2? A: (Patrik Hofbauer, CEO) The subscriber growth was due to good team performance without special campaigns. (Eric Hageman, CFO) The EBITDA growth was driven by cost overperformance in Finland and Sweden, and savings from reduced ancillary costs. Q: How do you plan to improve EBITDA growth in Q4 and into 2026? A: (Eric Hageman, CFO) We expect better Q4 performance due to continued momentum in Sweden, visibility on large enterprise projects, and pricing impacts. Finland's service revenue drag will lessen, contributing to improved EBITDA. Q: What is your strategy regarding the Bredband2 acquisition and its impact on market share? A: (Erik Strandin Pers, Head of IR) The acquisition is complementary, with Bredband2 strong in areas where we are weak. We are optimistic about regulatory approval, as the asset fits well with our strategy and strengthens our core market. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Business Insider
25-05-2025
- Business
- Business Insider
Kepler Capital Sticks to Its Hold Rating for Telia Company AB (TLSNF)
Kepler Capital analyst Kristoffer Carleskar maintained a Hold rating on Telia Company AB (TLSNF – Research Report) on May 23 and set a price target of SEK38.00. The company's shares closed last Wednesday at $3.59. Confident Investing Starts Here: According to TipRanks, Carleskar is a 2-star analyst with an average return of -1.1% and a 63.64% success rate. Telia Company AB has an analyst consensus of Hold, with a price target consensus of $3.71. TLSNF market cap is currently $14.99B and has a P/E ratio of 23.26. Based on the recent corporate insider activity of 13 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of TLSNF in relation to earlier this year.
Yahoo
31-01-2025
- Business
- Yahoo
Telia Company AB (TLSNF) Q4 2024 Earnings Call Highlights: Strong EBITDA Growth and Strategic ...
Service Revenue Growth: 1.5% in Q4; 1.8% for the full year. EBITDA Growth: 5.8% in Q4; 4.3% for the full year. CapEx: SEK13.5 billion for the full year, below the SEK14 billion guidance. Structural Cash Flow: SEK7.5 billion for the full year. Dividend Proposal: Unchanged at SEK2 per share for 2024. Sweden Service Revenue Growth: 0.5% in Q4. Finland Mobile Revenue Growth: 1.2% in Q4. Norway Mobile Revenue Growth: 1.3% in Q4. Lithuania Service Revenue Growth: 6.6% in Q4. Estonia EBITDA Growth: 7% in Q4. TV and Media EBITDA Increase: SEK220 million in Q4. Free Cash Flow: SEK4 billion for the full year. Net Debt Leverage: 2.28 times at the end of Q4. Warning! GuruFocus has detected 9 Warning Signs with TLSNF. Release Date: January 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Telia Company AB (TLSNF) successfully implemented a new operating model on December 1, realizing financial benefits of at least SEK2.6 billion. The company delivered on all 2024 outlook metrics, with service revenue growth at 1.8% and EBITDA growth at 4.3%. Fixed growth accelerated to 1.8% due to strong TV momentum in Sweden and positive trends in Business Solutions. TV and Media segment increased EBITDA by around SEK220 million due to lower content costs. The Board proposed an unchanged dividend of SEK2 per share for 2024, indicating stability in shareholder returns. Service revenue growth in Q4 was below midterm ambitions, coming in at 1.5%, partly due to timing of price changes in Nordic markets. Mobile revenues in Sweden were negative this quarter, impacting overall growth. Norway faced a tough cost comparison, leading to a decline in EBITDA by 3.6%. The company experienced a negative contribution to cash flow of SEK3.1 billion due to downsizing the vendor financing program. Linear TV advertising revenues faced structural headwinds, though partially offset by digital advertising growth. Q: Should we expect an acceleration in your service revenue growth in the first quarter of 2025 for Sweden, Norway, and Finland? What is driving that service revenue growth reacceleration? When will your Nordic telcos start delivering to their structural service revenue growth potential of 2%-plus? A: We expect service revenues to be around 2% for 2025, with a bit below in the first half and a bit above in the second half. Factors contributing to this include the absence of regulatory headwinds in Norway and Finland, decreased legacy pressure, and pricing initiatives starting in Q1. Additionally, mission-critical revenue in Sweden is expected to gradually increase from 2025 to 2027. Q: Can you discuss the changes to management in Finland and Norway and what improvements are expected? Also, what are the options for your TV and Media unit, and how are you thinking about timing for potential changes? A: In Norway, we have appointed Bjrn Ivar, who has extensive telco experience, to lead the unit. He will start by January 1 next year. For TV and Media, we are focusing on turning the company around and targeting an EBITDA of below SEK1 billion in 2025. While we don't need to own TV and Media assets, TV content remains important for our value proposition in Sweden. Q: What is the impact of the change program on your overall business, especially considering the reduction of 15% of employees? A: The change program aimed to make Telia simpler, faster, and more efficient. We completed it on time with limited operational impact. The program has gone better than expected, with employees understanding the changes. We expect to see the full run rate of the SEK2.6 billion cost reduction in 2025. Q: How do you see advertising revenues playing out in 2025 for TV and Media, given the structural headwinds for linear TV? A: We anticipate continued negative development for linear TV advertising in 2025. However, we are mitigating this by shifting focus to streaming revenues, both in terms of ad spending and subscriber growth. The total ad market is up, and we are compensating for linear declines with streaming growth. Q: Can you provide details on the pricing adjustments in Sweden and Norway and their impact on the subscriber base? A: We have implemented price increases in most of our markets, with a milder impact than expected. These adjustments have been made recently in Sweden, Norway, and Estonia, and will continue in other countries. We are closely monitoring the effects on our subscriber base. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
