Telia maintained its outlook for 2021, despite recording revenue and net income declines in the first quarter, as CEO Allison Kirkby (pictured) insisted the company remained resilient in the face of ongoing Covid-19 (coronavirus) headwinds.
In an earnings statement, Kirkby pointed to a return to EBITDA growth of 2.2 per cent year-on-year as a reason for optimism, reaching SEK7.2 billion ($855.6 million), which the CEO said gave it positive start to its recent strategy revamp to “create a better Telia”.
Revenue dropped 2.7 per cent to SEK21.8 billion, put down to lower roaming and an acceleration of legacy declines in Sweden, although offset by growth in its mobile, broadband and TV convergence play, along with equipment sales. In its home market, sales of SEK8.4 billion were 1 per cent higher.
Telia added it expects Sweden to experience positive trends in the second part of 2021, driven by commercial activities and better efficiency.
In Finland, Telia’s second-largest market, revenue fell 9.1 per cent to SEK3.5 billion on lower service revenues and exchange rate fluctuations. Norway also declined 3.5 per cent to SEK3.3 billion and Denmark 10.4 per cent to SEK1.3 billion.
Kirkby added “strategy execution” was now underway and its transformation programme was ramping, while it was also acclerating 5G having secured spectrum at “attractive investment levels” in Sweden and Denmark.
Net income declined 15 per cent to SEK974 million.
As part of the strategy overhaul revealed at the start of 2021, the company also unveiled Telia Asset Management, a division which will own and manage infrastructure assets.
Telia explained the unit was now fully operational, and actively reviewing tower assets in Norway and Finland.Subscribe to our daily newsletter Back