Telia Company AB (TLSNF) Q3 2024 Earnings Call Highlights: Steady Growth Amidst Enterprise ...

GuruFocus News
4 min read

In This Article:

  • Service Revenue Growth: 1.2% increase, driven by telco and TV and Media.

  • Consumer Segment Growth: 2.6% increase.

  • Enterprise Segment Decline: 1.7% decrease.

  • Mobile Revenue Growth: 1.6% increase.

  • Fixed Revenue Growth: 0.6% increase.

  • EBITDA Growth: 1.7% increase, mainly driven by Sweden, TV and Media, and Finland.

  • Structural OFCF Decline: From SEK 3.7 billion to SEK 3.1 billion.

  • Leverage Ratio: Declined to 2.17x.

  • Sweden Consumer Growth: 3.9% increase, driven by broadband and TV.

  • Sweden Enterprise Decline: 3.9% decrease.

  • Sweden Mobile ARPU Increase: 1% increase.

  • Sweden Broadband Subscriber Growth: 6,000 increase.

  • Sweden TV Subscriber Growth: 14,000 increase, with ARPU up 16%.

  • Finland Mobile Revenue Growth: 1.4% increase.

  • Finland Fixed Revenue Decline: 3.5% decrease.

  • Finland EBITDA Growth: 2.1% increase.

  • Finland Mobile ARPU Increase: 5% increase.

  • Norway Mobile Revenue Growth: Supported by wholesale.

  • Lithuania Service Revenue Growth: 3% increase.

  • Lithuania Mobile Revenue Growth: 7% increase.

  • Estonia Service Revenue Growth: 1% increase.

  • TV and Media Service Revenue Growth: 2% increase.

  • Group EBITDA Margin: 39%, highest in the last 5 years.

  • OpEx Reduction: 1% decrease, mainly due to lower resource and energy costs.

  • Book CapEx: SEK 2.9 billion, in line with the previous year.

  • Net Debt Leverage: 2.17x, comfortably in the lower half of the target range.

Release Date: October 24, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Telia Company AB (TLSNF) is on track with its change program, aiming to transform into a more customer-focused and efficient operator, with expected efficiencies of at least SEK 2.6 billion.

  • Consumer NPS scores have increased both quarter-on-quarter and year-on-year, indicating improved customer satisfaction.

  • Service revenue continued to grow, supported by both telco and TV and Media, with a 1.2% growth rate this quarter.

  • The company upgraded its EBIT outlook to mid-single-digit growth for the year and its CapEx outlook to be below SEK 14 billion.

  • Telia Sweden's growth was driven by consumer segments, with broadband and TV contributing significantly to revenue uplift.

Negative Points

  • Enterprise revenue declined by 1.7%, with a notable decline in Sweden's enterprise segment by 3.9%.

  • Structural OFCF declined from SEK 3.7 billion to SEK 3.1 billion due to increased interest payments.

  • Service revenue growth pace slowed to 1.2%, partly due to elevated revenue in Business Solutions in the previous year.

  • The mobile subscriber base in Finland declined by around 10,000, focusing more on value and ARPU rather than volume.

  • Norway faced lower revenues from business solutions and paper invoicing fees due to new regulations.

Recommended Stories