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Telia Company Reports Mixed Q1 Results Amid Revenue Growth

Telia Company AB showcases a decline in total net income while increasing net income from continuing operations. The telecommunications firm projects growth in adjusted EBITDA and service revenue in fiscal 2025.

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AI Rating:   6

Net Income and Earnings Per Share: Telia Company reported a total net income decline from SEK 757 million to SEK 692 million in the first quarter, which negatively impacts investor sentiment. Although net income from continuing operations significantly increased from SEK 1.11 billion to SEK 2.28 billion, this reflects a strong performance in core business areas.

Earnings per Share (EPS): EPS decreased from SEK 0.15 to SEK 0.13, which might deter investors looking for consistent profitability. However, the EPS from continuing operations increased to SEK 0.53 from SEK 0.24, indicating strength in ongoing operations.

Revenue Growth: Total revenue growth of 3.5% from SEK 19.36 billion to SEK 20.04 billion signals healthy operational performance, with adjusted figures presenting a 3.3% growth on a like-for-like basis. The growth in service revenue by 1.9% to SEK 17.03 billion demonstrates resilience in the competitive telecommunications space.

Adjusted EBITDA: The 6.7% increase in adjusted EBITDA to SEK 7.80 billion from SEK 7.31 billion indicates efficient cost management and operational efficiency, which is a positive sign for investors focusing on long-term potential.

Given the mixed results, investors should consider both the drop in total net income and EPS against the promising signs shown in revenue growth and EBITDA. The outlook shared by the company for fiscal 2025, expecting a minimum of 5% EBITDA growth and 2% service revenue growth, further aligns with positive long-term trends.

Stocks:  TLSNY