BACK TO GROWTH
Second quarter summary
- Net sales increased 0.5% to
SEK 21,877 million (21,770) and like for like, net sales increased 4.9%. -
Service revenues decreased 1.3% to
SEK 18,883 million (19,129) and like for like, service revenues increased 3.2%. -
Adjusted EBITDA declined 0.1% to
SEK 7,731 million (7,737) and like for like, adjusted EBITDA increased 1.9%. -
Operational free cash flow decreased to
SEK 2,057 million (2,202) and cash flow from operating activities was almost equal to last year at 6,245 million (6,267). -
The divestment of
Telia Carrier to Polhem Infra was completed onJune 1, 2021. -
Total net income increased to
SEK 8,104 million (-2,029) mainly due toTelia Carrier capital gain while 2020 was impacted by an impairment ofTurkcell Holding . -
An agreement was signed with Brookfield and Alecta for the sale of 49% of the tower businesses in
Finland and Norway. The leverage ratio based on Q2 and including the tower proceeds is estimated to be at 2.1x. - The outlook for 2021 is unchanged.
First half year summary
- Net sales declined 1.1% to
SEK 43,691 million (44,197) and like for like, net sales increased 2.4%. -
Service revenues decreased 3.1% to
SEK 37,629 million (38,845) and like for like, service revenues increased 0.4%. -
Adjusted EBITDA declined 0.3% to
SEK 14,977 million (15,014) and like for like, adjusted EBITDA increased 2.0%. -
Operational free cash flow increased to
SEK 6,094 million (5,508) and cash flow from operating activities increased toSEK 13,785 million (13,437).
CEO COMMENT...
"As we complete the first half of 2021, we return to service revenue growth and continue to deliver EBITDA growth, execute on our strategy, and solidify progress towards our 2021 outlook as well as our long-term ambition. With societies increasingly opening up, I am excited to start meeting both my fellow Telia colleagues and customers across our footprint, in person, to hear first-hand their reflections on our services and products. It is by listening to our customers and acting on their insights that we will reinvent a Better Telia, return to consistent and sustainable growth, while contributing to the digitalization of the societies of the Nordics and the Baltics.
Service revenue grew 3.2% in the quarter reaching
We continue to be the undisputed market leader in
Among our challenger markets, our Norwegian business continued to grow its mobile customer base within the enterprise segment, and we saw further stabilization of the consumer mobile customer base. Mobile subscriber service revenues grew 2.7% and fixed service revenues also accelerated the growth pace from the previous quarter. Our strong enterprise segment capabilities were highlighted in particular by securing the Norwegian postal service -
TV & Media had another excellent quarter. Our strong market positions in reach and content spurred both Ad and Pay/OTT growth leading to a 45% service revenue increase. Revenue recovery comfortably compensated for higher content costs, with EBITDA growing by
Our ambition to reinvent a Better Telia is progressing. Combining world class mobile networks, high speed broadband and high-quality content allows us to "Inspire our Customers" in the consumer segment with for example an offering including unlimited 5G mobile data, Netflix and C More - we are one of only five operators globally to bundle Netflix. The launch of EcoRating - enabling consumers to assess the environmental footprint of mobile handsets - together with some of
The modernization of our network and 5G roll-out continues at pace as does our legacy network shutdown. The latter plans always include solutions to ensure no-one is left behind, even in the most remote areas of our footprint. Network quality and leadership is essential to execute on our "Connect Everyone" priority and umlaut's conclusion, among others, that we maintain our network quality leadership in
This quarter saw good progress also in our "Transform to Digital" efforts aimed at transforming customer experience, simplifying the product portfolio, automating processes, increasing usage of data analytics, and removing legacy systems. An extension of our partnership with
Overall market growth is fundamental to "Deliver Sustainably" over the long run. Executing on our "more for more" strategy through convergence, disciplined pricing, and 5G monetization illustrate some of our responsible actions that will help lead the way to restored and sustainable top line growth across our footprint. As we strive to contribute to society and sustainability we were, during the quarter, selected as a European Climate Leader by the
Based on the performance in the quarter we reiterate our full year outlook of service revenues and EBITDA, excluding
Finally, I would like to thank all my Telia colleagues for their hard work and commitment to date. I look forward to the second half of 2021 and to us continuing to reinvent better together, for the benefit of our customers, employees, shareholders, and societies."
President & CEO
In Comments by the President & CEO, all growth rates disclosed are based on the like for like definition and EBITDA refers to adjusted EBITDA, unless otherwise stated. See definitions for more information.
This information is information that
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Forward-Looking Statements
Statements made in the press release relating to future status or circumstances, including future performance and other trend projections are forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements due to many factors, many of which are outside the control of
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