Telia (TELIA) Q1 2025 earnings summary

Executive summary

• Q1 2025 results met expectations, with the new organization delivering on commercial plans and financial outcomes close to targets.

• 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.

• Agreement to divest TV and Media business to Schibsted Media for SEK 6.55 billion, sharpening focus on core telecom operations; classified as discontinued operations.

• Launched a climate transition plan targeting net zero by 2040.

• 2025 outlook is reiterated, with a focus on core telecom and sustainability initiatives.

Financial highlights

• Service revenue grew by 1.8% year-over-year, driven by Sweden and the Baltics, with fixed service outpacing mobile.

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

• Free cash flow reached SEK 1.7 billion in Q1, up from negative SEK 278 million a year ago, with a full-year target of SEK 7.5 billion reaffirmed.

• CapEx on a rolling 12-month basis is below SEK 14 billion, with continued discipline expected.

• Leverage declined to 2.18x EBITDA, aided by strong cash flow and reduced net debt.

Outlook and guidance

• Full-year outlook remains unchanged, targeting around 2% service revenue growth and at least 5% EBITDA growth.

• EBITDA growth is expected to be lower than 5% in Q2 and Q3 due to ICE contract loss and Norlys TSA headwinds, but to accelerate in Q4.

• Free cash flow ambition of above SEK 10 billion by 2027 is reiterated.

• CapEx will remain below SEK 14 billion for the year, with current trends below that level.

• Progressive dividend policy with a floor of SEK 2.00 per share and ambition for low to mid-single digit growth.