Telia Company Ab · OMXSTO:TELIA
Telia Company Ab — Q1 2024 Earnings Presentation
27 slides from Telia Company Ab's earnings presentation, Apr 25, 2024
Slide 1: Telia Company Q1 2024
Telia Company Q1 2024 April 25, 2024
Slide 2: Continued solid Telco performance
Continued solid Telco performance Solid operational momentum Service revenue growth in Telco continued and TV and Media performance further improved Continued CX progress Positive NPS trend, mobile ARPU increased in most markets and mobile churn remained at low levels Network leadership confirmed Co
Slide 3: Q1 Highlights
Q1 Highlights − Solid financial Telco trend continued − Mobile growth of +2.6% and fixed increased +3.1% +2.7% − Consumer growth of +3.8% whereas Enterprise was neutral Service revenue growth (Telco operations, LFL) − EBITDA increased +2.1%, despite one-off costs in Sweden – EBITDA from continuing o
Slide 4: Overview: Telco operations
Overview Telco operations
Slide 5: Sweden financials
Sweden financials Service revenue Service revenue split Adj. EBITDA Reported currency, in SEK millions, like for like growth Reported currency, in SEK millions, like for like growth Reported currency, in SEK millions, like for like growth +0.4% +1.8% +2.2% +2.8% +3.5% +2.8% +4.1% +4.3% +4.7% +5.6% -
Slide 6: Sweden KPIs
Sweden KPIs Mobile postpaid subs. and ARPU Broadband subs. and ARPU TV subs. and ARPU Subscriptions ’000, ARPU in SEK Subscriptions ’000, ARPU in SEK Subscriptions ’000, ARPU in SEK 333 336 341 346 232 250 324 247 218 246 246 246 204 199 198 85 70 61 50 42 3,891 3,905 3,920 3,890 3,905 1,298 1,311 1
Slide 7: Finland
Finland Service revenue Adj. EBITDA Mobile postpaid subs. and ARPU Reported currency, in SEK millions, like for like growth Reported currency, in SEK millions, like for like growth Subscriptions ’000, ARPU in EUR +2.3% +2.3% +1.9% +2.1% +1.9% +1.2% +2.2% +10% +11% +3.9% 19.2 19.4 3,548 3,686 1,392 3
Slide 8: Norway
Norway Service revenue Adj. EBITDA Mobile postpaid subs. and ARPU Reported currency, in SEK millions, like for like growth Reported currency, in SEK millions, like for like growth Subscriptions ’000, ARPU in NOK +3.8% +5.4% +5.8% +4.2% +2.2% +2.7% +14% +11% +8.9% +5.9% 3,382 295 299 294 294 3,198 3,
Slide 9: Lithuania & Estonia
Lithuania & Estonia Lithuania Estonia Reported currency, in SEK millions, like for like growth Reported currency, in SEK millions, like for like growth +9.9% +6.5% +9.9% +4.3% +4.5% +13% +10% +19% +0.7% +5.5% +5.8% +8.3% +7.2% +6.2% +1.3% +10% +14% +15% +11% +5.7% 1,124 554 435 1,052 1,074 1,058 888
Slide 10: Overview: TV & Media
Overview TV & Media
Slide 11: TV & Media
TV & Media Service revenue Adj. EBITDA Direct OTT subs. and ARPU Reported currency, in SEK millions, like for like growth Reported currency, in SEK millions, like for like growth Subscriptions ’000, ARPU in SEK -2.2% -7.6% -8.5% -9.0% -2.1% n/a n/a -44% n/a +45% 188 185 184 178 170 179 196 2,313 183
Slide 12: Overview: Financials
Overview Financials
Slide 13: Service Revenue & EBITDA
Service Revenue & EBITDA Service revenue Adjusted EBITDA Like for like growth Like for like growth Continuing operations Continuing operations Telco operations 9.3% Telco operations 3.9% 7.6% 7.3% 3.2% 3.3% 5.4% 4.7% 4.6% 2.6% 2.7% 2.4% 2.2% 1.9% 1.9% 1.6% 2.1% 1.7% 0.0% -0.8% Q1 23 Q2 23 Q3 23 Q4 2
Slide 14: P&L
P&L Reported currency, Change LFL ‒ Revenue declined -1.3% as service revenue growth was offset by lower in SEK billions Q1 24 Q1 23 in SEK growth equipment sales in mainly Sweden (~SEK -450m) and Finland (~SEK -115m) Revenue 21.3 21.7 -0.4 -1.3% ‒ Service revenue increased +2.2%, supported by all T
Slide 15: OPEX & CAPEX
OPEX & CAPEX OPEX CAPEX excl. licenses Like for like growth Reported currency, in SEK billions -0.4 +0.1% 3.5 3.7 3.6 2.9 3.1 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Mobile NW Fixed NW Product & IT Other ‒ OPEX unchanged, with savings on energy (~SEK 40m), marketing and ‒ Reduction of SEK 0.4bn compared to Q1
Slide 16: Cash Flow
Cash Flow Reported currency, In-line with managements expectations in SEK billions Q1 24 Q1 23 Change ‒ EBITDA up as profitable growth momentum continues Adjusted EBITDA 7.1 6.9 0.2 ‒ Cash CAPEX declined SEK 0.8bn, partly driven by phasing Restructuring and other adj. items -0.3 -0.6 0.3 ‒ Interest
Slide 17: Cash Flow phasing
Cash Flow phasing Operational free cash flow Reported currency, in SEK billions, illustrative 2024 profile ‒ Structural OFCF expected to gradually nudge up across 2024 ‒ OFCF for the full year expected to be weighted towards H2 OFCF Structural OFCF 7.0 ‒ Interest paid tilted to H1 ‒ Working capital
Slide 18: Net Debt & Leverage
Net Debt & Leverage Net debt and leverage ‒ Net debt increased by SEK 4.0bn and leverage to 2.43x driven by mainly Total operations, reported currency, in SEK billions and leverage ratio cash flow phasing and dividend distribution ‒ Leverage to decrease by ~0.2x from Danish proceeds 2.32x 2.43x +4.0
Slide 19: Overview: Summary & Outlook
Overview Summary & Outlook
Slide 20: Q1 summary and outlook
Q1 summary and outlook − Telco growth momentum continued, supported by solid Consumer trends Service revenue* − TV and Media continued to improve on the back of business restructuring Low single digit growth − 5G roll-out continued at pace and Sweden accelerated − Structural cash flow to nudge up ac
Slide 21: Q&A
Overview Q&A
Slide 22: Thank you
Overview Thank you
Slide 23: Appendix
Overview Appendix
Slide 24: Progress towards a more sustainable Telia
Progress towards a more sustainable Telia Climate and Digital Privacy and circularity inclusion security Target: Target: Target: Net zero by 2040 Top tier positions/ 2.2 million individuals reached through digital inclusion CO2 emissions halved by 2030 preferred supplier in all markets initiatives 2
Slide 25: Telia's climate commitments
Telia’s climate commitments 2022 2024 2025 2026 2030 2040 Achieve Net Zero by reducing value chain CO2e emissions (scope 1, 2 and 3) by 90%, in line with the new SBTi Net Zero Corporate Standard, and offset (neutralize) residual emissions* • Reduce CO2e emissions in the whole value chain (scope 1, 2
Slide 26: Latest ESG awards and ratings
Latest ESG awards and ratings MSCI ESG rating EcoVadis Sustainalytics World Benchmark Alliance “AAA” (highest) “Platinum supplier” rating 19.5 Low Risk, Industry rank 12 out of 228 No 12 on digital inclusion in an assessment of 200 global tech companies CDP Climate Change Score ISS ESG rating FTSE4G
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