In This Article:
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Service Revenue Growth: 1.5% in Q4; 1.8% for the full year.
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EBITDA Growth: 5.8% in Q4; 4.3% for the full year.
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CapEx: SEK13.5 billion for the full year, below the SEK14 billion guidance.
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Structural Cash Flow: SEK7.5 billion for the full year.
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Dividend Proposal: Unchanged at SEK2 per share for 2024.
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Sweden Service Revenue Growth: 0.5% in Q4.
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Finland Mobile Revenue Growth: 1.2% in Q4.
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Norway Mobile Revenue Growth: 1.3% in Q4.
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Lithuania Service Revenue Growth: 6.6% in Q4.
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Estonia EBITDA Growth: 7% in Q4.
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TV and Media EBITDA Increase: SEK220 million in Q4.
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Free Cash Flow: SEK4 billion for the full year.
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Net Debt Leverage: 2.28 times at the end of Q4.
Release Date: January 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Telia Company AB (TLSNF) successfully implemented a new operating model on December 1, realizing financial benefits of at least SEK2.6 billion.
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The company delivered on all 2024 outlook metrics, with service revenue growth at 1.8% and EBITDA growth at 4.3%.
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Fixed growth accelerated to 1.8% due to strong TV momentum in Sweden and positive trends in Business Solutions.
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TV and Media segment increased EBITDA by around SEK220 million due to lower content costs.
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The Board proposed an unchanged dividend of SEK2 per share for 2024, indicating stability in shareholder returns.
Negative Points
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Service revenue growth in Q4 was below midterm ambitions, coming in at 1.5%, partly due to timing of price changes in Nordic markets.
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Mobile revenues in Sweden were negative this quarter, impacting overall growth.
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Norway faced a tough cost comparison, leading to a decline in EBITDA by 3.6%.
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The company experienced a negative contribution to cash flow of SEK3.1 billion due to downsizing the vendor financing program.
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Linear TV advertising revenues faced structural headwinds, though partially offset by digital advertising growth.
Q & A Highlights
Q: Should we expect an acceleration in your service revenue growth in the first quarter of 2025 for Sweden, Norway, and Finland? What is driving that service revenue growth reacceleration? When will your Nordic telcos start delivering to their structural service revenue growth potential of 2%-plus? A: We expect service revenues to be around 2% for 2025, with a bit below in the first half and a bit above in the second half. Factors contributing to this include the absence of regulatory headwinds in Norway and Finland, decreased legacy pressure, and pricing initiatives starting in Q1. Additionally, mission-critical revenue in Sweden is expected to gradually increase from 2025 to 2027.