Q2 2025 Telia Company AB Earnings Call Transcript
Key Points
- Telia Company AB (TLSNF) reported strong EBITDA growth of 6.2%, slightly ahead of expectations, driven by cost efficiencies and strong performance in Sweden and Finland.
- The company maintained its full-year outlook, with financials largely as expected, and reiterated its commitment to free cash flow above SEK10 billion by 2027.
- Telia's strategic focus on convergence is yielding results, with a 5% annual growth in average revenue per household and a reduction in churn for converged customers.
- The acquisition of Bredband2 is expected to strengthen Telia's consumer business in Sweden, with anticipated synergies of over SEK200 million within three years.
- Telia's balance sheet continues to improve, with leverage reduced to 2.09 times, supported by strong free cash flow and proceeds from divestments.
- Service revenue growth was somewhat below the full-year ambition due to a slowdown in Norway, impacting overall performance.
- Norway faced challenges with both service revenue and EBITDA trending down, attributed to lower mobile wholesale revenue and headwinds in broadband and TV.
- The company anticipates a softer Q3 before growth picks up again in Q4, with Norway expected to continue facing headwinds in the near term.
- Telia's mobile end-user service revenue trends in Sweden, Finland, and Norway are lagging behind peers, indicating room for improvement.
- The company faces regulatory scrutiny for its acquisition of Bredband2, with potential challenges in obtaining competition authority approval.
(audio in progress) Company's Q2 2025 results presentation.
And with that, I will now hand over to Telia Company's Head of Investor Relations, Erik Strandin Pers. Please go ahead. The floor is yours.
Thank you, Michael. Welcome, everyone, to the call on this busy morning. We have a presentation ahead of us. We have Patrik Hofbauer, our CEO; and Eric Hageman, our CFO, to present the results. And after that, we'll go to Q&A.
And we'll try this time to make sure everyone has a chance to ask questions. So we'll do two questions each this time, please. But before that, we have lots to present. So Patrik, please go ahead.
Thank you, Eric, and good morning, everyone. Let me go through what I believe was a very eventful quarter that shows that we are on the right track with our strategic agenda.
I'm glad to see that the new organization is delivering
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