Telia Co. Backs Guidance But Cautions on Costs

By Dominic Chopping

STOCKHOLM--Telia Co. AB on Wednesday posted a first-quarter net profit that missed forecasts and cautioned that inflation pressure is likely to hurt its cost targets, but the company backed its full-year guidance.

The Swedish telecommunications operator said it made a first-quarter net profit attributable to shareholders of 603 million kronor ($58.5 million), compared with SEK929 million a year earlier and the SEK1.16 billion expected in a FactSet poll.

Adjusted earnings before interest, taxes, depreciation and amortization--the company's preferred metric, which strips out exceptional and other one-off items--rose 0.8% to SEK7.26 billion, compared with an expected SEK7.28 billion.

Revenue rose 5.7% to SEK23.07 billion, against SEK22.38 billion expected.

"With energy headwinds starting to subside, pricing initiatives in place, and peak network investment now behind us, 2023 is a year for us to restore confidence in our strategy and improve cash generation, despite current challenges in TV and media," Chief Executive Allison Kirkby said.

"Heightened and continued inflationary pressure is masking the underlying cost take-out, and this is likely to impact our 2021-23 cost ambition."

Telia still expects like-for-like 2023 service revenue to grow by a low single digit, and adjusted Ebitda growth to be between flat and a low single digit percentage.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

April 26, 2023 02:12 ET (06:12 GMT)

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