Telia Company Ab · OMXSTO:TELIA
Telia Company Ab — Q2 2024 Earnings Presentation
27 slides from Telia Company Ab's earnings presentation, Jul 18, 2024
Slide 1: Telia Company Q2 2024
Telia Company Q2 2024 July 18, 2024
Slide 2: Continued operational momentum
Continued operational momentum Solid operational performance Service revenue and EBITDA growth continued in line with our expectations Continued healthy Consumer trends Positive subscriber base, APRU and churn trends across most products and markets Digitalization growth in TV and Media Strong growt
Slide 3: Q2 Highlights
Q2 Highlights +2.6% − Solid financial Telco trend continued − Service revenue increased +2.6% − Mobile growth of +2.5% and Fixed increased +1.3% Telco: Service revenue growth (LFL) − Consumer growth of +2.9% and Enterprise growth of +1.3% − EBITDA increased +4.1% supported by all markets – Group Ser
Slide 4: 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 +1.8% +2.2% +2.8% +3.5% +2.5% +4.1% +4.3% +4.7% +5.6% +4.3% +
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 348 232 235 250 341 346 247 248 333 336 218 246 246 204 198 70 61 50 42 34 3,905 3,920 3,890 3,905 3,909 1,311 1,318 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% +1.9% +2.1% +1.9% -0.2% +2.2% +10% +11% +3.9% +1.3% 19.2 19.4 19.4 3,548 3,686 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 +5.4% +5.8% +4.2% +2.2% +1.0% +14% +11% +8.9% +5.9% +3.0% 3,382 295 299 294 294 294 3,08
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 +6.5% +9.9% +4.3% +4.5% +4.9% +10% +19% +0.7% +5.5% +6.6% +8.3% +7.2% +6.2% +1.3% +1.8% +14% +15% +11% +5.7% +3.2% 1,124 1,118 554 435 420 1,052 1
Slide 10: 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 -7.6% -8.5% -9.0% -2.1% +2.0% 188 185 184 181 170 180 179 196 2,313 2,198 2,145 148 1,914 127 83 141 1,724 20
Slide 12: 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% 3.2% 3.3% 2.6% 2.7% 2.5% 2.6% 5.4% 5.3% 2.2% 4.7% 4.6% 1.9% 4.1% 1.7% 2.1% 0.0% Q2 23 Q3 23 Q4 23 Q1 24
Slide 14: P&L
P&L Reported currency, Change LFL ‒ Revenue increased +1.5% as lower sales of equipment in predominately in SEK billions Q2 24 Q2 23 in SEK growth Sweden was more than compensated for by service revenue growth Revenue 22.4 21.9 0.5 +1.5% ‒ Service revenue increased +2.5%, supported by both Telco as
Slide 15: OPEX & CAPEX
OPEX & CAPEX OPEX CAPEX excl. licenses and right of use assets Like for like growth Reported currency, in SEK billions -0.1 -5.0% 3.7 3.6 3.5 2.9 3.1 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Mobile NW Fixed NW Product & IT Other ‒ OPEX declined by -5% due to better cost discipline, resulting in lower ‒ Reducti
Slide 16: Cash Flow
Cash Flow Reported currency, Strong cash flow improvement in SEK billions Q2 24 Q2 23 Change ‒ EBITDA increased as profitable growth continued Adjusted EBITDA 7.9 7.4 0.5 ‒ Restructuring, cash CAPEX and taxes paid, all remained rather unchanged Restructuring and other adj. items -0.2 -0.3 0.1 ‒ Leas
Slide 17: Phasing
Phasing Adjusted EBITDA Operational free cash flow Reported currency, in SEK millions, illustrative 2024 profile Reported currency, in SEK billions, illustrative 2024 profile 9,000 OFCF Structural OFCF 7.0 8,500 8,000 3.4 3.7 7,500 2.8 2.3 1.7 7,000 0.6 0.7 0.4 6,500 -0.1 6,000 -0.8 Consensus Curren
Slide 18: Net Debt & Leverage
Net Debt & Leverage Net debt and leverage ‒ Net debt decreased by SEK 9.3bn and leverage to 2.21x driven by Total operations, reported currency, in SEK billions and leverage ratio ‒ EBITDA growth 2.43x 2.21x ‒ Positive cash flow generation -9.3 ‒ Proceeds from divesting Telia Denmark 77.8 68.4 = Lev
Slide 19: Summary & Outlook
Overview Summary & Outlook
Slide 20: Q2 summary and outlook
Q2 summary and outlook Outlook 2024 confirmed ‒ Telco growth continued supported by solid Consumer trends ‒ TV and Media continued to improve and reached positive Service revenue* service revenue growth as well as absolute EBITDA Low single digit growth ‒ Structural cash flow improved materially Q2
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 2.2 million individuals reached through digital inclusion Top tier positions/ CO2 emissions halved by 2030 initiatives 2021-2026 preferred supplier in all
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 SBTi Net Zero Corporate Standard, and offset (neutralize) residual emissions • Reduce CO2e emissions in the whole value chain (scope 1, 2 and
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 Joint second place in the ICT industry in the
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