Telia created a new unit for its infrastructure assets in an attempt to increase value, and also took the wraps off a strategy revamp designed to boost shareholder returns and cut costs.
In its Q4 earnings statement, CEO and President Allison Kirkby unveiled Telia Asset Management, a division which will own and manage selected assets, with the aim of “opening up the opportunity to bring in external investors and accelerate infrastructure development”.
“We have for some time been working to identify such assets within our portfolio where a special focus has been on our towers, in particular in markets where we act as a challenger, and we will now proactively identify relevant partners that could join us on this journey,” she said.
In addition, the company launched an updated strategy to “create a better Telia”, shifting away from being “a somewhat passive facilitator of connectivity”, and ultimately reinventing the company.
Telia said it would focus on connectivity, digital transformation, sustainability and attempt to better serve customers, as part of the strategy revamp.
It hopes the programme will help to reduce operational expenses by SEK2 billion ($240 million) until 2023 and SEK4 billion until 2025, as well as “return the company to growth and deliver sustainable value creation to our shareholders”.
The company swung to a net loss of SEK24.5 billion from a profit of SEK1.3 billion in Q3 2019, as it booked a capital loss on the disposal of its holding in Turkcell, in addition to an impairment in Finland.
The loss from Turkcell amounted to SEK17.9 billion, mainly related to reclassified accumulated foreign exchange losses, which it added had no effect on total equity. The impairment in Finland totalled SEK7.8 million, related to goodwill.
Revenue of SEK23.5 billion was up 2.7 per cent, mainly driven by the consolidation of TV and media.
The Covid-19 (coronavirus) pandemic also had an impact on earnings, although less than the previous quarter, predominantly on roaming and advertising. In total, revenue was impacted by around SEK400 million by the health crisis.Subscribe to our daily newsletter Back