By Stockholm, by Dominic Chopping
Telia Co., the Swedish telecommunications operator, has reaffirmed its full-year guidance following the release of its second-quarter results. The company reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of SEK 7.77 billion ($756.2 million), a 1.2% increase compared to the same period last year and in line with analysts’ forecasts.
Despite the positive EBITDA growth, net profit attributable to shareholders fell to SEK 762 million, down from SEK 1.52 billion in the previous year. Telia Co. also reported revenue of SEK 23.3 billion, a 4.5% increase from the same quarter in 2020.
However, the company acknowledged that its TV and Media division has been negatively impacted by the current downturn in the advertising market. Chief Executive Allison Kirkby stated that this setback, combined with existing challenges in premium sports and additional business transformation costs, has affected the financial performance of Telia Co.
Despite these challenges, Telia Co. remains optimistic about its full-year outlook. While it expects lower contribution from TV and Media, the company still anticipates like-for-like service revenue to grow by a low single-digit percentage by 2023. Adjusted EBITDA growth is also projected to be between flat and a low single-digit percentage.
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