Telia lifts FY outlook after higher Q3 EBITDA, unveils Common Products, Services unit amid slow Swedish turnaround

Nieuws Algemeen Scandinavië 19 OCT 2018
Telia lifts FY outlook after higher Q3 EBITDA, unveils Common Products, Services unit amid slow Swedish turnaround

Telia Company has revised its forecast for full year adjusted EBITDA upwards after a 1.8 percent year-on-year rise in third quarter local currencies and a 6.4 percent increase in reported currency to SEK 6.98 billion. Adjusted EBITDA is growing in six out of seven countries, with Finland, Norway and its central units the main drivers. Telia said it is "not happy" with the pace of turnaround in Sweden and will move some platforms and staff to a new Common Products and Services unit.

Third quarter net sales were up just 0.1 percent in local currencies but service revenues dropped 1.9 percent. In reported currency, net sales rose 5.5 percent to SEK 20.69 billion. The net profit for the third quarter climbed to SEK 3.03 billion from SEK 2.59 billion.

Telia said it now predicts that full year EBITDA will be slightly above the 2017 level, which is more optimistic than its previous more cautious guidance of EBITDA in line with last year or slightly above it. It still expects operational free cash flow to be above SEK 9.70 billion.

New Swedish CEO Anders Olsson has begun building a stronger commercial roadmap and improving efficiency. This will start execution on 01 January as Telia's updated operating model enters force, initially between its new unit Common Products and Services under group COO Magnus Zetterberg, and Sweden. The Swedish IT and product platforms and some 500 workers will move to Common Products and Services.

The other countries will follow later, adding more structural efficiencies. This transformation delay means the real, significant benefits will come in 2020 rather than in 2019 as had been expected. Part of the turn-around in Sweden is to tighten the execution of the transformation and improve cost efficiency in other areas.

In Finland, Telia had mobile B2B growth of 7 percent, adding some large contract wins in the third quarter. Looking again to Sweden, Telia said it is in talks with the EU Commission regarding the Bonnier Broadcasting transaction, a controversial issue given the state’s 37.3 percent stake in Telia. The operator aims to complete the merger filings around the end of the first quarter of 2019 and still expects the deal to close in the second half of next year.

Categories:

Algemeen

Companies:

Telia,  Bonnier

Regions:

Scandinavië

Tags:

Voice services, Staff, Financial figures, Wireline, Wireless, Internet Access, Broadcast, Corporate strategy

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