By Alessandro Parodi (Reuters) -Telia said on Thursday it was well-positioned to meet its 2025 targets, even after the Swedish telecom operator posted a smaller-than-expected rise in its fourth-
Telia Confirms 2025 Goals Despite Missing Q4 Profit
By Alessandro Parodi
(Reuters) -Telia reiterated its 2025 targets on Thursday, even as the Swedish telecom operator reported a smaller-than-expected increase in fourth-quarter adjusted core earnings weighed down by its core markets Sweden and Norway.
The group, which provides telecom services and operates TV channels in the Nordic and Baltic regions, said it was entering 2025 "well-positioned to meet these targets."
"The most important part for us now is to deliver on our change programme and hold the plan that we have on the financial targets that we called out for 2025," CEO Patrik Hofbauer told Reuters.
Telia maintained its 2025 forecasts of service revenue growth of around 2%, EBITDA growth of at least 5% and booked CAPEX below 14 billion crowns.
For the fourth quarter, adjusted operating profit before depreciation and amortisation (EBITDA) rose to 7.87 billion crowns ($715.74 million) from 7.49 billion crowns a year earlier. Analysts on average had expected 7.92 billion crowns, according to a poll provided by Telia.
The smaller-than-expected rise was in part due to lower EBITDA growth in Sweden and Norway - 1.4% and 5.3% below consensus at 3.49 billion crowns and 1.61 billion crowns, respectively.
Group service revenue rose 0.6% to 19.73 billion crowns, lower than the 19.81 billion crowns analysts had expected.
Meanwhile, operational free cash flow dropped less than expected to 826 million crowns as the group presses on with its cost-cutting overhaul launched in the second quarter. Analysts had forecast it to be negative by 1.71 billions.
Telia will continue to simplify its portfolio, but it is open to buying more of its core business, including fibre and tech, Hofbauer said.
He said the group's customers had not experienced any impact from recent Baltic Sea cable disruptions, but called for increased awareness and surveillance from governments.
The company proposed a dividend of 2 crowns per share on its 2024 results, in line with the dividend it paid on its 2023 results and matching analysts' expectations.
($1 = 10.9956 Swedish crowns)
(Reporting by Alessandro Parodi in Gdansk, editing by Subhranshu Sahu and Terje Solsvik)
