Telia Company Ab · OMXSTO:TELIA
Telia Company Ab — Q3 2024 Earnings Presentation
28 slides from Telia Company Ab's earnings presentation, Oct 24, 2024
Slide 1: Telia Company Q3 2024
Telia Company Q3 2024 October 24, 2024
Slide 2: Full focus on new strategic priorities
Full focus on new strategic priorities Change program on track Important milestones passed with the ambition to have the new organization in place December 1 Consumer trends remained strong Consumer NPS continued to improve and APRU trends remained healthy across most services and markets Strong dig
Slide 3: Q3 highlights
Q3 highlights +1.2% – Service revenue increased +1.2% supported by Sweden, Baltics and Other operations − Telco: +1.1% (Consumer +2.6% and Enterprise -1.7%) Service revenue growth (LFL) – Mobile increased +1.6% and Fixed increased +0.6% − Mobile revenue increased in all markets − Continued stellar g
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 +2.2% +2.8% +3.5% +2.5% +1.1% +4.3% +4.7% +5.6% +4.3% +3.1% +
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 232 235 236 250 341 346 348 347 248 248 336 218 246 246 204 61 50 42 34 30 3,920 3,890 3,905 3,909 3,906 1,318 1,327 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 +1.9% +2.1% +1.9% -0.2% -0.6% +10% +11% +3.9% +1.3% +2.1% 19.4 19.4 19.5 3,686 1,392 1,
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 +5.8% +4.2% +2.2% +1.0% -0.7% +11% +8.9% +5.9% +3.0% -1.5% 3,382 3,231 299 294 294 294 2
Slide 9: 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 +9.9% +4.3% +4.5% +4.9% +3.1% +19% +0.7% +5.5% +6.6% +1.9% +7.2% +6.2% +1.3% +1.8% +1.2% +15% +11% +5.7% +3.2% +2.6% 1,124 1,118 1,129 554 550 435
Slide 10: Overview: TV & Media
Overview TV & Media
Slide 11: 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 -8.5% -9.0% -2.1% +2.0% +1.9% 185 184 181 170 161 2,313 196 180 180 2,198 190 179 1,914 127 83 1,724 1,746 14
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 Telco operations 9.3% 3.9% 7.6% 7.3% 3.3% 2.6% 2.7% 2.5% 2.6% 5.4% 5.3% 2.2% 4.6% 4.1% 1.7% 1.2% 1.1% 2.1% 1.7% 1.0% Q3 23 Q4 23 Q1 24 Q2 24
Slide 14: P&L
P&L Reported currency, Change LFL ‒ Revenue increased +0.9% due to service revenue growth in SEK billions Q3 24 Q3 23 in SEK growth ‒ Service revenue increased +1.2%, supported by both Telco as well as Revenue 21.7 21.9 -0.2 +0.9% TV and Media of which service revenue 18.8 18.9 -0.1 +1.2% ‒ Mobile u
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 -1.2% +0.0 3.6 3.5 2.9 3.1 2.9 Q3 23 Resources Marketing Other Q3 24 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Mobile NW Fixed NW Product & IT Other ‒ OPEX declined by ~1% driven by lowe
Slide 16: Cash Flow
Cash Flow Reported currency, ‒ EBITDA, restructuring, leasing and cash CAPEX, all remained rather in SEK billions Q3 24 Q3 23 Change unchanged Adjusted EBITDA 8.5 8.5 0.0 ‒ Interest paid increased by SEK 0.4bn mainly due to phasing from Q2 and higher interest rates vs. LY Restructuring and other adj
Slide 17: Net Debt & Leverage
Net Debt & Leverage Net debt and leverage ‒ Leverage decreased from 2.21x in Q2 to 2.17x in Q3 driven by net debt Total operations, reported currency, in SEK billions and leverage ratio declining by SEK 1.1bn, this despite a SEK 1.9bn reduction of the vendor financing balance 2.21x 2.17x ‒ Positive
Slide 18: Overview: Summary & Outlook
Overview Summary & Outlook
Slide 19: Q3 summary and outlook
Q3 summary and outlook Outlook 2024 upgraded ‒ Q3 results in line with our expectations ‒ Change program launched for improved commercial execution Service revenue* and faster decision-making Low single digit growth ‒ Financial ambitions for 2025-27 announced, with roadmap to at least SEK 10 billion
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Slide 21: Thank you
Overview Thank you
Slide 22: Appendix
Overview Appendix
Slide 23: 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 24: Our strategy
Our Our purpose We reinvent strategy better connected living Where we play Nordic/Baltic #1 or #2 Connectivity or adjacency close to core How we win Inspiring customer Network & Trusted & experiences technology quality sustainable partner Simplify Innovate Grow Our priorities/ Getting it right Getti
Slide 25: Our sustainability progress and ambitions
Our sustainability progress and ambitions Climate and Human rights circularity and ethics To date ‒ Net zero emissions in value chain by ‒ Safe, just and inclusive business ‒ Suppliers responsible for 56% of emissions have approved SBTi targets or equivalent 2040 operation and practices ‒ Zero waste
Slide 26: Our climate commitments
Our 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 SBTi Net Zero Corporate Standard, and offset (neutralize) residual emissions • Reduce CO2e emissions in the whole value chain (scope 1, 2 and 3) b
Slide 27: Our sustainability ratings
Our sustainability ratings MSCI ESG rating EcoVadis Sustainalytics World Benchmark Alliance “AAA” (highest) “Platinum supplier” rating 15.0 Low Risk, Industry rank 12 out of 224 No 12 on digital inclusion in an assessment of 200 global tech companies CDP Climate Rating ISS ESG rating FTSE4Good Globa
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