Telia slowed somewhat the decline in results in the second quarter compared to Q1 and said it still expects a steady improvement in the second half of the year, based on efforts launched already and planned for this autumn to stimulate sales. The company said it's also accelerating the roll-out of a new operating model successful at its Swedish business to other countries in order to support its cost-reduction efforts.
On a reported basis, Telia's quarterly revenues rose 2.2 percent to SEK 21.27 billion, and adjusted EBITDA was up 16.7 percent to SEK 7.52 billion. Excluding currency effects, changes in scope and the impact of new accounting rules, revenues fell 4.2 percent, service revenues dropped 1.4 percent and adjusted EBITDA was down 2 percent. That compares to organic service revenues down 2.6 percent in Q1 and underlying EBITDA falling 4 percent in the previous quarter.
Adjusted operating profit fell 12.7 percent to SEK 3.15 billion, and the net profit declined to SEK 1.65 billion from SEK 2.24 billion a year ago.
The operational free cash flow from continuing operations fell slightly to SEK 2.443 billion, while Telia maintained its full-year outlook for growth in the figure to SEK 12-12.5 billion. In the first half, the figure was flat at SEK 6.9 billion, and Telia said the slower start to EBITDA in the first half will be compensated with other cash flow measures in H2.
CEO Johan Dennelind said the "trend is right, even if the recovery curve is slow". The weak underlying results were primarily due to a soft mobile B2C market in Norway and a negative service revenue mix in Finland.
The company said it still expects to close the Bonnier Broadcasting deal by year-end, despite the EU launching an in-depth competition investigation.
