Telia (TELIA) Q2 2024 earnings summary

Executive summary

• Q2 2024 results showed continued momentum in service revenue and EBITDA, with strong operational performance and healthy consumer trends, supporting the value creation plan for 2025–2027.

• TV and media improved, with digital revenue and advertising growth offsetting linear declines, and streaming subscriber base expanding.

• The company confirmed its full-year outlook across all key metrics and plans a capital market update in September.

• Denmark sale finalized, reducing leverage to 2.21x and generating a SEK 3.3 billion capital gain.

• Operational free cash flow improved, and net income surged, mainly due to the Denmark divestment.

Financial highlights

• Q2 service revenue grew 3.3% year-over-year to SEK 19,403 million, with adjusted EBITDA up 6.4% to SEK 7,856 million and margin at 35.1%.

• Net income rose to SEK 4,851 million, mainly from a SEK 3,261 million capital gain on the Denmark divestment.

• Operational free cash flow reached SEK 2,760 million, and free cash flow per share (R12) was SEK 2.78.

• OpEx declined 5%, and EBITDA margin expanded by 130 basis points to 35.1%.

• CapEx for Q2 was SEK 3,536 million, SEK 100 million lower year-over-year, with full-year CapEx guidance unchanged at SEK 14 billion.

Outlook and guidance

• 2024 outlook unchanged: service revenue and adjusted EBITDA expected to grow low to mid-single digits like-for-like.

• CapEx guidance at around SEK 14 billion; structural operational free cash flow expected at SEK 7–8 billion, now toward the lower end.

• Leverage target: Net debt/adjusted EBITDA 2.0–2.5x; dividend policy: progressive, floor of SEK 2.00/share.

• Q3 EBITDA growth expected to be flat due to tough comparisons, with a rebound anticipated in Q4.