Telia (TELIA) Q3 2025 earnings summary

Executive summary

• Customer satisfaction and NPS improved across key markets, supported by enhanced network performance and operational efficiency measures.

• Execution of value creation and cost efficiency plans led to 4.4% EBITDA growth and strong free cash flow, fully covering the dividend.

• Significant portfolio actions included the completed TV and Media divestment, a formal offer to acquire Bredband2, and a memorandum of understanding to divest Latvian operations.

• The change program reduced headcount and central resources by nearly 25%, improving operational efficiency.

• 2025 outlook was upgraded, with higher free cash flow and lower CAPEX guidance.

Financial highlights

• Service revenue grew 1.0% year-over-year, with Sweden and the Baltics offsetting a decline in Norway.

• Adjusted EBITDA increased by 4.4% year-over-year, with margin up to 42.6% from 41.2% last year.

• Free cash flow for the first nine months reached SEK 6.9 billion, with Q3 at SEK 2.9 billion, leading to an upgraded full-year outlook of around SEK 8 billion.

• Capex for the year is now expected to be around SEK 13 billion, down from SEK 14 billion.

• Leverage reduced to 1.93x net debt/EBITDA, down from 2.09x last quarter, with net debt reduced by SEK 7.1 billion.

Outlook and guidance

• Upgraded full-year free cash flow guidance to around SEK 8 billion and capex guidance to around SEK 13 billion.

• 2025 service revenue growth outlook is around 2% year-over-year, with adjusted EBITDA growth at least 5%.

• Dividend policy targets a progressive dividend with a floor of SEK 2.00 per share.

• Committed to medium-term targets: 2% CAGR service revenue, 4% CAGR EBITDA, and at least SEK 10 billion free cash flow by 2027.