Key Takeaways:
Swedish telecom operator Telia (TELIA.ST) reported first-quarter core earnings above market expectations, driven by service revenue growth across most markets and lower operational expenses.
"Demand for Telia's services is strong across our markets, with transformational technologies, such as AI, dependent on secure, reliable, and high-quality connectivity," CEO Patrik Hofbauer said in a statement.
The company's adjusted operating profit before interest, taxes, depreciation, and amortization (EBITDA) increased 4.0% on a like-for-like basis to 7.94 billion Swedish crowns ($856.78 million). Analysts had expected an average profit of 7.84 billion crowns in a company-compiled poll. Shares rose about 3% in early Stockholm trading.
Quarterly service revenue increased 2.1% on a like-for-like basis, a gain attributed to continued strong development in its Sweden and Lithuania operations. The beat on profit was also supported by a reduction in operational expenditures.
The positive results and subsequent share price increase suggest investor confidence in the new CEO's strategy and the company's ability to manage costs effectively while growing its core services. Investors will be watching for continued revenue growth and margin expansion in the upcoming Q2 results to see if the momentum can be sustained.
This article is for informational purposes only and does not constitute investment advice.
