Telia Company Ab · OMXSTO:TELIA
Telia Company Ab — Q4 2024 Earnings Presentation
28 slides from Telia Company Ab's earnings presentation, Jan 30, 2025
Slide 1: Telia Company Q4 2024
Telia Company Q4 2024 January 30, 2025
Slide 2: Delivering on our agenda
Delivering on our agenda Full year 2024 outlook: Change program executed Service revenue* Executed on change program in line with plan with new operating model Outlook: Low single digit growth implemented from December 1, 2024 Outcome: 1.8% Adjusted EBITDA* Growth momentum in line with expectation
Slide 3: Q4 highlights
Q4 highlights +1.5% – Service revenue increased +1.5% supported by Sweden, Baltics and Other operations − Telco: +1.7% (Consumer +1.9% and Enterprise +0.9%) Service revenue growth (LFL) – Mobile increased +0.9% and Fixed increased +1.8% − Mobile revenue increased in all markets except Sweden − Conti
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 +2.8% +3.5% +2.5% +1.1% +0.5% +4.7% +5.6% +4.3% +3.1% +2.3% +
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 232 235 236 245 251 341 346 348 347 345 247 249 249 249 218 50 42 34 30 22 3,873 3,884 3,886 3,880 3,853 1,327 1,334 1
Slide 7: 5 years of consistent TV growth for Telia Sweden
5 years of consistent TV growth for Telia Sweden Broadest content portfolio Unique packaging and good value for money Selected examples Peer 1 SEK 299/month SEK 999/month SEK 299/month Select Select Peer 2 Peer 3 Streaming Sports − SKI winner 9 of the last 10 years − One-stop-shop experience in a fr
Slide 8: 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 +2.1% +1.9% -0.2% -0.6% -0.3% +11% +3.9% +1.3% +2.1% +7.4% 19.4 19.4 19.5 19.9 3,686 1,
Slide 9: 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 +4.2% +2.2% +1.0% -0.7% -0.6% +8.9% +5.9% +3.0% -1.5% -3.6% 294 294 294 298 295 3,231 1,
Slide 10: Lithuania and Estonia
Lithuania and Estonia Lithuania Estonia Reported currency, in SEK millions, like for like growth Reported currency, in SEK millions, like for like growth +4.3% +4.5% +4.9% +3.1% +6.6% +0.7% +5.5% +6.6% +1.9% +8.8% +6.2% +1.3% +1.8% +1.2% +1.4% +11% +5.7% +3.2% +2.6% +6.7% 1,118 1,129 1,136 550 420 4
Slide 11: Overview: TV & Media
Overview TV & Media
Slide 12: TV and Media
TV and Media Service revenue Adj. EBITDA Direct OTT subs. and ARPU Reported currency, in SEK millions, like for like growth Reported currency, in SEK millions Subscriptions ’000, ARPU in SEK -9.0% -2.1% +2.0% +1.9% -0.2% 184 181 181 170 161 2,313 2,305 243 180 180 213 2,198 190 179 196 1,914 83 1,74
Slide 13: Overview: Financials
Overview Financials
Slide 14: Service Revenue & EBITDA
Service Revenue & EBITDA Service revenue Adjusted EBITDA Like for like growth Like for like growth Group Group Telco operations Telco operations 3.3% 7.3% 2.7% 2.6% 5.4% 5.8% 2.5% 5.3% 2.2% 4.6% 4.1% 1.7% 1.5% 1.7% 1.2% 2.9% 1.1% 2.1% 1.7% 1.0% Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q4 23 Q1 24 Q2 24 Q3 24 Q
Slide 15: OPEX & CAPEX
OPEX & CAPEX OPEX Booked CAPEX excl. licenses and right of use assets Like for like growth Reported currency, in SEK billions -1.6% +0.4 4.0 3.6 3.5 3.1 2.9 2023 Resources Marketing Other 2024 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Mobile NW Fixed NW Product & IT Other ‒ Lower resource and energy costs in 20
Slide 16: Cash Flow
Cash Flow Reported currency, ‒ Adjusted EBITDA up SEK 1.1bn (and 1.3 bn in constant currency) in SEK billions 2024 2023 Change ‒ Interest increased but somewhat less than expected at the start of the year Adjusted EBITDA 31.3 30.3 1.1 ‒ Structural part of OFCF ended at SEK 7.5bn, mid-range vs. 7-8bn
Slide 17: Net Debt & Leverage
Net Debt & Leverage Net debt and leverage ‒ Leverage increased to 2.28x in Q4 (2.17x in Q3) driven by net debt Total operations, reported currency, in SEK billions and leverage ratio increasing by SEK 4.1bn, mainly due to 2.17x 2.28x ‒ Vendor financing down-sizing SEK 3.3bn 4.1 ‒ Paid dividend of SE
Slide 18: Progress on value creation agenda in 2024
Progress on value creation agenda in 2024 Grow FCF per share to Active portfolio Actively manage our Grow DPS and return cover the dividend management balance sheet excess cash to shareholders ‒ EBITDA growth of +4.3% and ‒ Sale of Telia Denmark closed ‒ Vendor financing balance right- ‒ Unchanged d
Slide 19: Overview: Summary & Outlook
Overview Summary & Outlook
Slide 20: Q4 summary and outlook
Q4 summary and outlook ‒ Ending 2024 in line with our expectations Outlook 2025 ‒ Change program executed and new operating model Service revenue* Growth of around 2% implemented on December 1st to drive improved commercial execution, faster decision-making and clearer accountability ‒ Delivered on
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Slide 22: Thank you
Overview Thank you
Slide 23: Appendix
Overview Appendix
Slide 24: Our 2025 outlook
As presented at the Investor update on September 26, 2024 Our 2025 outlook Service revenue Adjusted EBITDA Booked CAPEX excl. Free cash flow*** Like for like growth Like for like growth licenses** SEK SEK Around 2% At least 5% <14bn Around 8bn Our 2025-2027 ambitions Service revenue* Adjusted EBITDA
Slide 25: Our sustainability progress and ambitions
Our sustainability progress and ambitions Key highlights 2024 Ambitions Full Year ‒ Suppliers responsible for 62% of emissions have approved SBTi targets or equivalent Climate and Human rights ‒ 2.3 million individuals reached by digital inclusion initiatives, circularity and ethics up by 500.000 du
Slide 26: Our climate commitments
Our climate commitments 2022 2025 2026 2030 2040 − Carbon balancing remaining Short term Science Based − Achieve an A score in − Reduce GHG emissions in Achieve Net Zero: emissions from Telia own Targets: CDP’s external climate the value chain (scope 3) by operations by purchase of disclosure at lea
Slide 27: Our key sustainability ratings
Our key sustainability ratings MSCI ESG rating Ecovadis ISS ESG rating Global Child Forum “AAA” (highest) “Platinum supplier” rating -B (Prime status) No. 1 in Sweden, No. 14 among all companies assessed (1,802) CDP Climate Rating Sustainalytics FTSE4Good World Benchmark Alliance A- Rated Included J
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