FULL FOCUS ON STRATEGY EXECUTION
First quarter summary
- Net sales declined 2.7% to
SEK 21,814 million (22,427) and like for like, net sales remained unchanged. -
Service revenues decreased 4.9% to
SEK 18,747 million (19,716) and like for like, service revenues declined 2.3%. -
Adjusted EBITDA declined 0.4% to
SEK 7,245 million (7,277) and like for like, adjusted EBITDA increased 2.2%. -
Lower roaming revenues due to COVID-19 is estimated to have impacted service revenues negatively by around
SEK 250 million . -
Operating income decreased to
SEK 1,821 million (2,406). -
Total net income amounted to
SEK 974 million (1,146). Total net income attributable to owners of the parent amounted toSEK 965 million (1,109). -
Operational free cash flow increased to
SEK 4,036 million (3,307) and cash flow from operating activities increased toSEK 7,540 million (7,170). - At the beginning of the quarter a new strategy to transform Telia was launched.
-
All approvals necessary regarding the disposal of
Telia Carrier have now been received and the transaction will close onJune 1, 2021. -
The outlook for 2021 remains unchanged: Service revenues and adjusted EBITDA, in constant currency and excluding
Telia Carrier , are expected to be flat or grow by low single digit. Cash CAPEX, excludingTelia Carrier and fees for licenses and spectrum, is expected to be in the range ofSEK 14.5-15.5 billion .
CEO COMMENT...
"The first quarter of 2021 saw Telia return to EBITDA growth, a positive start on our journey to create a Better Telia, despite the pandemic continuing to impact our customers and our colleagues. It gives me great pride that Telia is continuing to play such a vital role in keeping our region secure and connected, while delivering on an ambitious turnaround. Strategy execution is underway, and our transformation program is ramping up, laying the foundation for us to return Telia to sustainable and profitable growth.
Service revenue for the quarter was
Across all our markets, we saw increased COVID-19 restrictions, including store closures, versus the prior quarter. Despite this backdrop, we remained relatively resilient.
In our market leading operations of
In our challenger markets,
TV & Media had an excellent quarter, with a return to revenue growth (+3%), with Pay/OTT up 10% and Ad only slightly down (-1%). Revenue growth combined with a 3% reduction in operational expenses resulted in positive EBITDA for the quarter versus a small loss last year.
At the beginning of the quarter, we launched our updated strategy to transform Telia and return it to growth. We have only just started, and I am happy to see the initial effects coming through. Convergence is a key value lever to "Inspire our customers", and our multiyear deal with the Swedish housing developer Familjebostäder - containing a unique combination of solutions, including broadband, TV and IoT - reflects the depth of our convergence capabilities for both the enterprise and consumer segment. We continued to add converged households in
Having secured 5G spectrum at attractive investment levels in both
"Transform to Digital", our multifaceted effort targeting product portfolio as well as IT infrastructure simplification and process automation, is also progressing to plan. Legacy migration and organizational streamlining have yielded network cost reductions in
In line with our commitment to "Deliver Sustainably", both to ourselves and towards all stakeholders, I am pleased that we are now climate neutral in our own operations. We only use renewable electricity, so emissions have gone down substantially the past few years, and to achieve climate neutrality we offset the remaining emissions from other energy sources and from our business travels. Our efforts to integrate sustainability in all our material processes continues at pace, exemplified by our
Based on the performance in the quarter we reiterate our full year outlook of service revenues and EBITDA, excluding
To conclude, having launched our updated strategy to create a better Telia, we are now firmly in execution mode and our transformation program is fully under way. Achieving the guidance given for 2021-23 (low single digit growth in sales, low to mid-single digit growth in adjusted EBITDA and 15% cash CAPEX to net sales) should provide investors with a clear route to value creation. Our efforts are focused fully on delivering on the roadmap that will enable growth, develop our asset base, allowing us to reinvent better, for our customers, employees, and shareholders, while contributing our part to enabling the development and digitalization of the societies of the Nordics and the Baltics."
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.
This information is information that
For more information, please contact our press office +46 771 77 58 30, visit our Newsroom or follow us on Twitter @Teliacompany.
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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