By Dominic Chopping

STOCKHOLM--Telia Co. AB on Friday backed full-year guidance despite reporting lower-than-expected first-quarter net profit as cost cuts failed to offset the continuing impact to roaming revenue from the Covid-19 pandemic.

The Swedish telecommunications operator made a net profit of 965 million Swedish kronor ($114.6 million), compared with SEK1.11 billion a year earlier. Analysts polled by FactSet had expected a net profit of SEK1.34 billion.

Adjusted earnings before interest, taxes, depreciation and amortization--the company's preferred metric, which strips out exceptional and other one-off items--was down 0.4% at SEK7.25 billion. Analysts had expected adjusted Ebitda of SEK7.18 billion, according to FactSet.

Net sales for the quarter fell 2.7% to SEK21.81 billion, the company said.

The company said the pandemic had an estimated SEK250 million hit on roaming revenue in the first quarter compared with a year prior.

Telia said it is well positioned to accelerate the 5G rollout, modernizing its mobile networks and strengthening its 5G positions in Sweden, Norway and Estonia, and catching up in Finland.

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.

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

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

(END) Dow Jones Newswires

04-23-21 0157ET