Telia Company Q1 Profit Down, Backs FY21 Outlook; Stock Down

Shares of Telia Co. AB (0H6X.L,TLSNY.PK) were losing around 2 percent in the morning trading in Sweden after the telecom company reported Friday a decline in first-quarter net income attributable to owners of the parent to 965 million Swedish kronor from last year's 1.11 billion kronor.

Operating income decreased to 1.82 billion kronor from 2.41 billion kronor a year ago. Adjusted EBITDA declined 0.4 percent to 7.25 billion kronor. On a like -for- like basis, adjusted EBITDA increased 2.2 percent.

Net sales declined 2.7 percent to 21.81 billion kronor from prior year's 22.43 billion kronor. Like for like net sales remained unchanged.

Service revenues decreased 4.9 percent to 18.75 billion kronor. The company recorded lower roaming revenues due to COVID-19.

Regarding the disposal of Telia Carrier, the company said all necessary approvals have now been received and the transaction will close on June 1, 2021.

Looking ahead for fiscal 2021, the company continues to expect service revenues and adjusted EBITDA, in constant currency and excluding Telia Carrier, to be flat or grow by low single digit.

In Sweden, Telia Company shares were trading at 35.41 krona, down 1.56 percent.

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