Telia exits Latvia, bids for Bredband2 as Q2 EBITDA rises 6.2%

Published 18/07/2025, 08:16
© Reuters

Investing.com -- Telia Company (ST:TELIA) on Friday reported a 6.2% like-for-like increase in adjusted EBITDA in the second quarter of 2025, supported by service revenue growth in Sweden and the Baltics and reduced operational costs following its 2024 Change program. 

Revenue rose 1.2% like-for-like to SEK 19.8 billion, while service revenue increased 1%.

Operating income grew to SEK 3.4 billion from SEK 3 billion. Net income dropped to SEK 2.2 billion from SEK 4.9 billion, and earnings per share declined to SEK 0.50 from SEK 1.19, reflecting the absence of a capital gain recorded in the prior-year quarter from the sale of Danish operations.

Free cash flow rose to SEK 2.3 billion from SEK 1.9 billion, driven by EBITDA growth and lower cash CAPEX, which fell to SEK 3 billion from SEK 3.5 billion. 

Cash flow from operating activities declined to SEK 6.7 billion from SEK 7.3 billion. Leverage decreased to 2.09x from 2.18x.

Telia completed the divestment of its TV and Media business to Schibsted Media on July 1. 

On July 17, the company signed an agreement to sell its holdings in Latvian operators Tet and LMT, with the transaction expected to close in 2026. 

A day later, Telia launched a SEK 3.1 billion public offer for Bredband2 at SEK 3.25 per share.

Sweden posted 2.8% service revenue growth and 7.8% EBITDA growth, led by fixed services. 

Finland saw a 0.7% decline in service revenue, while EBITDA increased 9.8%. Norway’s service revenue declined 3.9%, and EBITDA fell 8.6% due to lower wholesale and TV revenue. 

Lithuania reported 5.4% service revenue growth and an 11% rise in EBITDA. Estonia grew service revenue by 3.1% and EBITDA by 3.9%.

Other operations, including the Latvian mobile business and Telia Towers, reported 5% revenue growth and a 31.9% rise in EBITDA. Latvia’s mobile unit grew service revenue by 7.1% and EBITDA by 9.6%.

Discontinued operations, comprising TV and Media and the previously sold Danish assets, reported SEK 2.1 billion in revenue, down from SEK 2.2 billion. EBITDA rose to SEK 485 million from SEK 119 million.

Total (EPA:TTEF) borrowings fell to SEK 93.8 billion from SEK 97.9 billion at year-end. Net debt stood at SEK 68.5 billion. 

Adjusted EBITDA on a rolling 12-month basis reached SEK 32.7 billion. Credit ratings from Moody’s (Baa1) and S&P (BBB+) remained stable.

Telia reiterated its 2025 outlook, guiding for about 2% service revenue growth, at least 5% EBITDA growth, CAPEX below SEK 14 billion, and free cash flow around SEK 7.5 billion.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.