Telia (TELIA) Q2 2025 earnings summary

Executive summary

• EBITDA grew 6.2% year-over-year, with strong performance in Sweden and the Baltics, while Norway faced headwinds; innovation initiatives and portfolio management advanced, including the TV and media sale, Latvian exit MoU, and Bredband2 public offer.

• North Star Innovation Program expanded, with collaboration from the Swedish Armed Forces to test advanced 5G capabilities.

• Net income declined to SEK 2.2 billion from SEK 4.9 billion due to a prior-year capital gain from Denmark divestment.

• Full-year and 2025 outlooks reiterated, expecting a softer Q3 and rebound in Q4, with ambitions for growth through 2027.

Financial highlights

• Service revenue grew 1.0% year-over-year, supported by Sweden and the Baltics, but pressured in Norway; group service revenue growth year-to-date at 1.4%.

• Adjusted EBITDA increased by 6.2% year-over-year, with margin expansion to 40.3%; including TV and media, EBITDA growth would have been 11%.

• Free cash flow reached SEK 2.3 billion for the quarter, up SEK 400 million year-over-year, supported by lower CapEx and asset sales.

• CapEx remained well within the annual frame of less than SEK 14 billion; rolling 12-month CapEx at SEK 12.6 billion.

• Leverage ratio declined to 2.09x from 2.18x in Q1, with net debt reduced by SEK 1.5 billion.

Outlook and guidance

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

• Committed to delivering free cash flow above SEK 10 billion by 2027.

• Growth expected to improve in H2, mainly supported by pricing and enterprise/public sector services.