Telia (TELIA) Q1 2025 earnings summary

Executive summary

• Achieved a solid start to 2025, meeting expectations in the first full quarter under a new organization and country-led model, with successful execution of commercial plans.

• Revenue grew 3.5% year-over-year to SEK 20,035 million, with service revenue up 1.9% and adjusted EBITDA up 6.7% like for like.

• Completed the sale agreement of the TV and media business to Schibsted Media for SEK 6.55 billion, enabling greater focus on core telecom operations; classified as discontinued operations.

• Published a climate transition plan outlining a roadmap to net zero by 2040.

• Operating income rose 36.4% to SEK 3,602 million, but net income declined to SEK 692 million due to a SEK 1.9 billion non-cash impairment from discontinued operations.

Financial highlights

• Service revenue grew by 1.8% year-over-year, driven by Sweden, Baltics, and Other operations.

• Adjusted EBITDA increased by 6.7% year-over-year, with margin improving to 38.9% from 37.8%.

• Free cash flow reached SEK 1.7 billion in Q1, up SEK 2.0 billion from Q1 2024, with a full-year target of SEK 7.5 billion.

• CapEx on a rolling 12-month basis is below SEK 14 billion, currently SEK 13.1 billion.

• Leverage declined to 2.18x EBITDA, supported by strong cash flow and ongoing dividend payments.

Outlook and guidance

• 2025 outlook reiterated: service revenue growth around 2%, adjusted EBITDA growth at least 5%, CapEx below SEK 14 billion, and free cash flow around SEK 7.5 billion.

• Ambition to deliver free cash flow above SEK 10 billion by 2027.

• Leverage target set at net debt/adjusted EBITDA of 2.0–2.5x.

• Dividend policy maintained at SEK 2 per share, with ambition for low to mid-single digit growth.

• Service revenue growth expected to be lower in H1 than H2; EBITDA growth profile tilted toward Q4.