Sweden's Telia Q3 revenue rises on Nordic, Baltic growth

By Reuters News


Overview

  • Sweden telecom operator's Q3 revenue rose yr/yr, driven by service revenue growth in Nordics, Baltics

  • Adjusted EBITDA for Q3 grew 2.9% like for like, supported by service revenue and lower expenses

  • Company plans to cut about 900 positions, targeting SEK 1 bln annual gross savings by 2028


Outlook

  • Telia raises 2026 adjusted EBITDA growth outlook to 3-4% from around 3%

  • Company now expects 2026 free cash flow of at least SEK 9 bln, up from around SEK 9 bln

  • Telia targets SEK 1 bln in annual gross savings from further localization and workforce reduction by 2028


Result Drivers

  • SERVICE REVENUE GROWTH - Co said Q3 service revenue growth was mainly driven by strong performance in Sweden, Norway and the Baltics

  • LOWER OPERATIONAL EXPENSES - Co attributed EBITDA growth to reduced operational expenses, including cost discipline and temporary items

  • WORKING CAPITAL CONTRIBUTION - Co said strong free cash flow was supported by positive working capital contribution


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

SEK 21.30 bln

Q3 Net Income

SEK 2.90 bln

Q3 Adjusted Free Cash Flow

SEK 7.60 bln

Q3 Free Cash Flow

SEK 3.70 bln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 9 "hold" and 5 "sell" or "strong sell"

  • The average consensus recommendation for the integrated telecommunications services peer group is "buy."

  • Wall Street's median 12-month price target for Telia Company AB (publ) is SEK47.50, about 3.1% above its October 21 closing price of SEK46.05

  • The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 20 three months ago


Reuters Recommended Reads

  • Oct 20 - Sweden's Tele2 Q3 sales rise on service revenue growth, cuts guidance

  • Oct 19 - Truckload carrier Werner Enterprises sees Q3 revenue up to $951 million

  • Oct 21 - Finland's Elisa slightly misses Q3 revenue estimates, maintains 2026 capex forecast


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.