Telia CEO Patrik Hofbauer was left satisfied by its performance in Q2, with the executive highlighting continued momentum in telecoms revenue and customer satisfaction along with a positive contribution from its media unit.
In earnings documents, Hofbauer noted gains in Telia’s Swedish and Lithuanian operations along with a slight increase in Estonia. He acknowledged a slowdown in its momentum in Norway, while Finland bore the brunt of efforts to phase out non-core services.
Telia’s total service revenue grew 2.5 per cent year-on-year to SEK19.4 billion ($1.8 billion) on a like-for-like basis.
Hofbauer singled out the telecoms business as a consistent performer, with service revenue up 2.6 per cent. He said customer satisfaction continued to improve in a period which was “in line with our expectations”.
He branded a 2.5 per cent rise in Swedish service revenue “satisfactory” given a decline in earnings from copper-based services.
Consumer services continued to be the “engine of growth” in the nation, with Telia focused on improving its TV service and booking some growth in its broadband business.
“Mobile revenue continued to be stable. Within Enterprise, revenue is stable after a period of strong growth in larger customer projects”.
Hofbauer (pictured, left) was less satisfied by its Finnish unit, though said mobile was healthy with higher ARPU, “good customer satisfaction and low churn”.
Telia is bolstering its sales capacity with new stores to spur subscriber growth and is “cautiously encouraged” by the initial results.
Declines in Telia’s Norwegian fixed line business largely offset mobile growth: the company is relying on an improved TV product to boost revenue, while also looking into the “need for targeted investments” in fixed infrastructure.
Telia booked mid-single-digit revenue growth in Lithuania, where Hofbauer noted continued high levels of customer satisfaction, while mobile broadband contributed to a slight rise in revenue growth in Estonia, with its 5G coverage now above 80 per cent.
Net income rose from SEK917 million to SEK4.8 billion, with overall revenue up 2.3 per cent to SEK22.4 billion.
Comments