Telia reiterates outlook after stronger Q2

Telia Company has reiterated its full-year guidance after reporting improved service revenue and EBITDA growth in the second quarter. The Nordic and Baltic operator reported revenue of SEK 20.7 billion, [...]

Telia Company has reiterated its full-year guidance after reporting improved service revenue and EBITDA growth in the second quarter. The Nordic and Baltic operator reported revenue of SEK 20.7 billion, compared with SEK 19.8 billion a year earlier. Service revenue increased 2.8% on a like-for-like basis, its strongest growth in four years, driven mainly by Sweden, Norway and the Baltics.

Adjusted EBITDA rose 3.4% like for like, helped by service revenue growth across all markets and lower operating costs. Operating income increased to SEK 3.7 billion from SEK 3.4 billion, while net income rose to SEK 2.4 billion. Free cash flow slipped slightly to SEK 2.2 billion from SEK 2.3 billion.

“We continued our good momentum from the first quarter with solid service revenue development and EBITDA growth,” said Patrik Hofbauer, Telia president and CEO. “This reflects strong demand for Telia’s secure, reliable and high-quality connectivity, as well as our cost and capital discipline.” Sweden remained the main growth driver, supported by convergent offers across mobile, broadband and TV.

Telia also discontinued its Halebop mid-market brand as part of a simplification programme. The group completed the acquisition of Bredband2 in February, having secured 96.7% of the Swedish broadband operator’s shares. In Norway, Telia said its turnaround was progressing, with service revenue returning to growth across mobile, broadband and TV.

Its planned mobile RAN combination with Ice is expected to become operational in the second half of 2026. Telia’s TV platform also saw record demand during Sweden’s and Norway’s FIFA World Cup matches, with more than 770,000 concurrent TV streams. The company said the platform performed with high quality during the traffic peak.

The group is also increasing its focus on sovereign and mission-critical services. In Sweden, it has signed an MoU with KTH Royal Institute of Technology and Brookfield to develop sovereign AI services and applications, and has launched sovereign IoT and 5G standalone-based critical IoT connectivity services. Telia said it is still working to finalise agreements for the divestment of its Latvian operations.

Last year, it signed an MoU with the Republic of Latvia, Latvenergo and LVRTC covering the sale of its stakes in fixed operator Tet and mobile operator LMT, where it holds 49% and an effective 60.3% respectively. For the first half, Telia revenue rose to SEK 40.7 billion from SEK 39.8 billion, while like-for-like adjusted EBITDA increased 3.6%.