Company Performance#

Telia Company has kicked off 2026 on a strong note, reporting a 2.1% increase in service revenue for the first quarter. This growth is fueled by robust performance in both business services and consumer broadband. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) also saw a 4% rise, with the EBITDA margin expanding to 40%. This positive trend aligns with Telia’s forecast of approximately 2% service revenue growth for the year.

Financial Highlights#

  • Service Revenue: Grew by 2.1% year-over-year (YoY).
  • EBITDA: Increased by 4% YoY, reaching a margin of 40%.
  • Free Cash Flow: Stronger than anticipated at 1.9 billion SEK (Swedish Krona).
  • Net Debt: Increased by 4.6 billion SEK, with a leverage ratio of 2.07 times, indicating manageable debt levels.

Earnings vs. Forecast#

Telia’s Q1 results closely matched market expectations, with service revenue and EBITDA growth in line with predictions. The company has maintained its guidance for the full year, expecting around 2% growth in service revenue and 3% growth in EBITDA.

Market Reaction#

Following the earnings announcement, Telia’s stock price rose by 3.74%, reaching 49.08 SEK. This increase reflects investor confidence in the company’s strategic direction and financial stability, suggesting optimism about its future growth potential.

Outlook & Guidance#

Telia has reaffirmed its full-year guidance for 2026, anticipating approximately 2% growth in service revenue and 3% growth in EBITDA. The company continues to focus on deploying 5G standalone (SA) technology and enhancing its service offerings in the Nordic and Baltic regions.

Executive Commentary#

The CEO of Telia emphasized the successful execution of the company’s transformation agenda, highlighting the positive effects of strategic initiatives like the 5G SA rollout and the integration of Bredband2, which are expected to contribute to future growth.

Risks and Challenges#

Despite the positive outlook, Telia faces challenges such as rising energy costs in Norway and the Baltics, which could affect profitability, as well as intense competition in the Nordic market.