Stockholm–Telia Co. has reaffirmed its full-year guidance after reporting second-quarter adjusted earnings that were in line with expectations. The Swedish telecommunications operator saw a 1.2% increase, reaching 7.77 billion Swedish kronor ($756.2 million), in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). This metric is the company’s preferred measure as it excludes exceptional and one-off items.
The second-quarter net profit attributable to shareholders experienced a decline from SEK1.52 billion to SEK762 million, compared to the expected SEK1.5 billion. On the other hand, revenue showed a 4.5% increase, rising to SEK23.3 billion.
Chief Executive Allison Kirkby acknowledged the impact of the advertising market downturn and existing challenges in premium sports on the group’s financial performance. She highlighted that the ongoing business transformation has incurred additional costs. As a result, the company expects its cash flow range for the full year to be in the lower half of the SEK7-9 billion range.
Telia remains optimistic about its future prospects, with expected like-for-like 2023 service revenue growth in the low single digits. Adjusted EBITDA growth is projected to be flat or a low single-digit percentage.
