Telia agreed to sell its Denmark business for around SEK9.5 billion ($920 million) to utilities and broadband company Norlys, as the operator group continues to cut down its operations outside of markets it believes it can lead in.

In a statement, Telia indicated the move followed years of reviewing strategic options for its Danish business. The buyer provides energy services alongside domestic TV and internet.

The deal covers Telia’s operations and network assets in the country and is subject to regulatory approval. It is expected to close by the end of Q1 2024.

“The transaction crystallises value from both the outstanding work of the Telia Denmark team who have led such an impressive turnaround of the business during the last 18 months”, Telia president and CEO Allison Kirkby said.

She added it was part of a strategy where the company can focus “on markets where we can sustain or build a leading position”.

Telia issued details of the Danish deal prior to releasing Q1 earnings information today (26 April), in which it outlined continued struggles in its media and TV division, which is in the process of being restructured.

The company noted earnings from its telecommunications businesses grew, though issues elsewhere dragged earnings down.

Overall revenue was up 5.7 per cent year-on-year to SEK23.1 billion, though net income fell 32.1 per cent to SEK738 million as declines at its media business and one-off items took their toll.

“Looking ahead, our full-year outlook is unchanged. With energy headwinds starting to subside, pricing initiatives in place and peak network investment now behind us, 2023 is a year for us to restore confidence in our strategy and improve cash generation, despite current challenges in TV and media,” Kirkby noted.