Telia Company Q1 2024
April 25, 2024
Continued solid Telco performance
Solid operational momentum
Service revenue growth in Telco continued and
TV and Media performance further improved
Continued CX progress
Positive NPS trend, mobile ARPU increased in most markets and mobile churn remained at low levels
Network leadership confirmed
Continued momentum on 5G deployment with Sweden at nearly 90% and with legacy phase-out on track
Outlook confirmed
Starting the year in line with our plan
2
Q1 Highlights
- Solid financial Telco trend continued
- Mobile growth of +2.6% and fixed increased +3.1%
- Consumer growth of +3.8% whereas Enterprise was neutral
- EBITDA increased +2.1%, despite one-off costs in Sweden
- EBITDA from continuing operations grew +4.6%, with reduced losses in TV and Media
- Structural OFCF of SEK 0.4bn despite SEK 0.4bn in pension refund phased from Q1 to Q2
- Leverage of 2.43x in Q1 with Danish proceeds to reduce leverage by ~0.2x
- Divestment of Telia Denmark closed in early April
- Capital markets update preliminarily planned for September
+2.7%
Service revenue growth
(Telco operations, LFL)
+2.1%
Adjusted EBITDA growth
(Telco operations, LFL)
0.4bn
Structural part of OFCF
(In SEK)
3
Telco operations
Sweden financials
Service revenue
Reported currency, in SEK millions, like for like growth
+0.4% +1.8% +2.2% +2.8% +3.5%
7,413 | 7,579 | 7,594 | 7,816 | 7,676 |
Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | ||
Consumer | Enterprise | Other | ||||
- Service revenue growth continued to improve
- Positive on both Consumer (+5.0%) and Enterprise (+0.3%)
- Mobile -0.1%, Broadband +5.5%, and TV +23%
Service revenue split
Reported currency, in SEK millions, like for like growth
+2.8% | +4.1% | +4.3% | +4.7% | +5.6% |
6,983 | 7,175 | 7,212 | 7,468 | 7,372 |
430 404 382 348 304
Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | |
Copper legacy* | Underlying | ||||
- Copper legacy headwind of ~SEK 130m
- Underlying service revenue growth improved again sequentially driven by Consumer
Adj. EBITDA
Reported currency, in SEK millions, like for like growth
-0.3% +0.2% +4.0% +0.8% -1.7%
3,313 | 3,351 | 3,516 | 3,435 | 3,256 |
Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 |
Adj. EBITDA
- EBITDA impacted by ~SEK 100m pension refund re-phasing and ~SEK 50m write-down of receivables
* Copper legacy = end customer revenue from telephony & xDSL | 5 |
Sweden KPIs
Mobile postpaid subs. and ARPU
Subscriptions '000, ARPU in SEK
246 | 247 | 246 | 250 | 246 |
3,891 | 3,905 | 3,920 | 3,890 | 3,905 |
Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | |
Postpaid ex M2M | ARPU | ||||
- Subscriber base increased somewhat supported by Consumer
- ARPU remained unchanged as pricing was offset by product mix
Broadband subs. and ARPU
Subscriptions '000, ARPU in SEK
324 333 336 341 346
85 | 70 | 61 | 50 | 42 |
1,298 1,311 1,318 1,327 1,334
Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | |||
Fiber and FWA | Copper | ARPU | |||||
- Subscriber base stable as fiber and FWA compensated for copper decline
- ARPU growth supported by reduced campaign levels, with fiber growing +10%
TV subs. and ARPU
Subscriptions '000, ARPU in SEK
232
218
199 198 204
994 1,004 1,017 1,034 1,051
Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | |
Subscriptions | ARPU | ||||
- Subscriber base continued to grow, up 6% y-o-y
- APRU growth of 17% driven by pricing
6
Finland
Service revenue
Reported currency, in SEK millions, like for like growth
+2.3% | +2.3% | +1.9% | +2.1% | +1.9% |
3,367 | 3,478 | 3,548 | 3,686 | 3,434 |
Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | |||
Consumer | Enterprise | Other | |||||
- Service revenue growth stable around +2%
- Mobile growth increased to +4.4% supported by Consumer
- Fixed declined -1.2% driven by telephony and business solutions, partly due to regulation
Adj. EBITDA
Reported currency, in SEK millions, like for like growth
+1.2% | +2.2% | +10% | +11% | +3.9% |
1,258 | 1,392 | 1,246 | 1,249 | |
1,197 | ||||
Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 |
Adj. EBITDA
- EBITDA grew +3.9% from service revenue flow through, despite regulatory impact
- Less tailwind from energy compared to previous quarters (SEK 20m in Q1 vs. ~SEK 80m in Q4)
Mobile postpaid subs. and ARPU
Subscriptions '000, ARPU in EUR
19.2 | 19.4 | |||||||||||
18.6 | ||||||||||||
18.4 | ||||||||||||
17.9 | ||||||||||||
2,604 | 2,600 | 2,590 | 2,566 | 2,541 | ||||||||
Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | ||||||||
7
Norway
Service revenue
Reported currency, in SEK millions, like for like growth
+3.8% | +5.4% | +5.8% | +4.2% | +2.2% |
3,198 | 3,085 | 3,382 | 3,188 | 3,117 |
Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | |||
Consumer | Enterprise | Other | |||||
- Continued solid development on mobile (+4.7%) driven by ARPU and wholesale
- Fixed declined somewhat driven by broadband and business solutions
- Negative impact from invoicing fee regulation
Adj. EBITDA
Reported currency, in SEK millions, like for like growth
+2.7% +14% +11% +8.9% +5.9%
1,978 | |||
1,681 | 1,697 | 1,705 | 1,692 |
Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 |
Adj. EBITDA
- EBITDA growth supported by service revenue growth and resource reduction
Mobile postpaid subs. and ARPU
Subscriptions '000, ARPU in NOK
286 | 295 | 299 | 294 | 294 | ||
1,899 | 1,896 | 1,893 | 1,885 | 1,883 | ||
Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | ||
Postpaid ex M2M | ARPU | |||||
- Subscriber base flat in the quarter
- ARPU improvement (+2.8%) driven by Consumer pricing
8
Lithuania & Estonia
Lithuania
Reported currency, in SEK millions, like for like growth
+9.9% +6.5% +9.9% +4.3% +4.5%+13% +10% +19% +0.7% +5.5%
1,009 | 1,052 | 1,124 | 1,074 | 1,058 | 499 | 554 | 511 |
483 | 483 | ||||||
Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 |
Service revenue | Adj. EBITDA |
- Continued mobile growth (+7.6%) and fixed also grew (+1.9%)
- EBITDA growth of 5.5%, reflecting rise in service revenue and operational leverage
Estonia
Reported currency, in SEK millions, like for like growth
+5.8% | +8.3% | +7.2% | +6.2% | +1.3% | +10% | +14% | +15% | +11% | +5.7% |
857 | 888 | 890 | 401 | 435 | 401 | 404 | |||
821 | 834 | 382 | |||||||
Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 |
Service revenue | Adj. EBITDA |
- Service revenue growth slowed with mobile (-0.7%) and fixed (+2.3%) driven by phasing of pricing
- Measures taken to support growth from Q2 onwards
- EBITDA growth continued to outpace service revenue
9
TV & Media
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Telia Company AB published this content on 24 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 April 2024 06:58:16 UTC.