By Dominic Chopping

STOCKHOLM--Telia Co. AB on Wednesday backed full-year guidance and said plans are in place to sharply reduce costs in the coming months.

The Swedish telecommunications operator said it made a net profit of 8.07 billion Swedish kronor ($927.4 million), compared with a loss of SEK2.05 billion a year earlier, with earnings this year boosted by a SEK9.45 billion disposal.

Adjusted earnings before interest, taxes, depreciation and amortization--the company's preferred metric, which strips out exceptional and other one-off items--fell 0.1% to SEK7.73 billion, the company said. Analysts had expected adjusted Ebitda of SEK7.6 billion, according to FactSet.

Net sales rose 0.5% to SEK21.88 billion, the company said. Telia said the pandemic hit roaming revenue, which was SEK50 million lower compared with a year earlier.

"There is a clear need to accelerate network modernization and digitalization," said Chief Executive Allison Kirkby. "Concurrently, we continue to review, and have plans to radically reduce, the cost base in the coming months," she said.

For 2021, Telia said it still expects service revenue and adjusted Ebitda to be flat or grow by low-single digits. Cash capital expenditure is still seen between SEK14.5 billion and SEK15.5 billion, it said.

Service revenue and adjusted Ebitda are expected to grow by low-single digits between 2021 and 2023, the company said.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

07-21-21 0207ET