Telia's profit beats expectations as telecom business shines

Telecom operator Telia on Wednesday reported first-quarter core earnings above market expectations, helped by cost cuts and growth in its telecom business in the Nordic markets.

Adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) rose to 7.26 billion Swedish crowns ($705.20 million) from 7.20 billion crowns a year earlier. Analysts had forecast 7.17 billion crowns, according to Refinitiv estimates.

Since laying out a restructuring plan in 2021 to slash costs through 2025, Telia has laid off staff, divested assets and streamlined operations to boost growth.

The telecom operator on Tuesday agreed to sell its Danish operations to electricity and internet provider Norlys for 6.25 billion Danish crowns ($920 million) as part of a divestment plan.

"I wouldn't expect another deal like that this year but we still have some assets in our portfolio... we would look to exit them at the right valuation," CEO Allison Kirkby told Reuters on Wednesday.

The company, which operates telecom networks in the Nordics and the Baltics, said its comparable net sales rose 3.7% in the quarter to 23.07 billion crowns. Analysts were expecting 22.39 billion crowns.

Still, Telia, like many companies globally, witnessed weak performance in its TV advertisement business.

Kirkby attributed it to companies getting squeezed as a result of inflation and consumer pressure resulting in a pullback on their advertising budget.