Sweden-based telecommunications operator Telia Co. has announced that it is raising its full-year guidance after reporting better-than-expected adjusted earnings for the third quarter. Despite weakness in the television and media sectors, Telia’s telecommunications business has performed well, leading to a positive outcome for the company.
Robust Third-Quarter Performance
In the third quarter, Telia’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 9.5% to 8.47 billion Swedish kronor ($768.7 million). This surpassed the FactSet poll estimate of SEK7.96 billion.
Net profit for the quarter amounted to SEK1.79 billion, exceeding both the previous year’s figure of SEK1.71 billion and the expected amount of SEK1.69 billion. Meanwhile, revenue grew by 4.3% to SEK22.0 billion, slightly lower than the expected SEK22.02 billion.
Telco Operations Lead the Way
Telia’s Chief Executive, Allison Kirkby, expressed satisfaction with the company’s performance, stating that “Telia’s growth accelerated to levels not seen in many years, with momentum in our Telco operations more than compensating for the weak advertising market.”
Upgraded Outlook for EBITDA and Capital Expenditure
Based on the positive results, Telia has revised its outlook for the rest of the year. The company now expects EBITDA to grow at a low-single-digit rate, upgrading its earlier forecast of flat to low-single-digit growth.
Additionally, Telia anticipates that its capital expenditure, excluding fees, will reach approximately SEK13.5 billion in 2023. This figure was previously estimated to be between SEK13.0 billion and SEK14.0 billion.
Predicted Service Revenue Growth
Telia still maintains its expectation for like-for-like service revenue to experience low single-digit growth by 2023.