Telia maintained its full year outlook and pledged to radically reduce its cost base in the coming months, as it swung back to profit in Q2 and maintained steady sales due to strength in the Baltics and home market Sweden.
In its earnings statment CEO Allison Kirkby (pictured) explained a strong first half helped shore up its full-year outlook along with its longer-term goals.
“There is a clear need to accelerate network modernisation and digitalisation to drive improved customer experience and a better brand perception. Concurrently, we continue to review, and have plans to radically reduce, the cost base in the coming months.”
The operator recorded net income of SEK8.1 billion ($932 million), up from a loss of SEK2 billion in Q2 2020 when it was put into the red due to an impairment related to Turkcell Holding. Its profit was also boosted by its Telia Carrier division.
Net sales were flat at SEK21.9 billion, with service revenue driven primarily by its TV and Media unit, along with growth in mobile, which was offset by roaming declines.
In home market Sweden, revenue rose 1.7 per cent to SEK8.5 billion on higher equipment sales, and activity in fibre and TV, which offset lower service revenue due to declines in fixed and mobile.
Revenue in Norway rose 3.5 per cent to SEK3.3 billion, Estonia grew 3.8 per cent and Lithuania was flat.
It was not as successful in Finland, where revenue dropped 5.9 per cent to SEK3.5 billion, again due to lower service revenue and the effect of exchange rate fluctuations. Denmark also suffered, with net sales falling 6.2 per cent to SEK1.2 billion.Subscribe to our daily newsletter Back