Swedish telecom operator Telia reported on Thursday its third-quarter core earnings above expectations, and raised its full-year core profit outlook.
Telia’s adjusted operating profit before depreciation and amortisation (EBITDA) rose almost 10% to 8.5 billion crowns ($770.3 million) from 7.7 billion crowns a year earlier. Analysts expected a profit of 7.9 billion crowns, according to a mean estimate in LSEG poll.
The company now expects its adjusted EBITDA, like for like, to grow by low single digits in 2023. Its previous forecast was for flat to low single-digit growth.
“In the third quarter, Telia’s growth accelerated to levels not seen in many years, with momentum in our Telco operations more than compensating for the weak advertising market,” CEO Allison Kirkby said in a statement.
The CEO said its working capital would be a key focus for the company in the following quarter and next year.
Telia’s TV and Media business has been hit by weak advertising revenue, content commitments made in earlier years, and costs related to upcoming launch of the new hybrid TV4 Play service.
The telecom operator has made several attempts to offset the underperformance by discontinuing its unprofitable streaming service C More, and in 2021 launched a restructuring plan to slash costs through 2025. Reuters