Telia Company Reports Q2 Earnings; Reaffirms 2021 Outlook

Telia Company AB TLSNY reported second-quarter FY21 net sales growth of 0.5% year-on-year to SEK 21.9 billion. Like for like, net sales increased 4.9%.
The TV and Media unit, Sweden, and the Baltic operations drove the increase.
Service revenues declined 1.3% Y/Y to SEK 18.9 billion.
Adjusted EBITDA contracted 20 basis points to 35.3%.
Adjusted operating margin contracted 100 basis points to 12.5%.
Net income was SEK 8.1 billion.
EPS was SEK 1.97.
Telia generated SEK 6.2 billion in operating cash flow.
It completed the divestment of Telia Carrier to Polhem Infra on June 1.
Outlook: The company reaffirmed outlook for 2021. It expects full-year service revenues and EBITDA, excluding Telia Carrier and FX, at flat to low single-digit growth.
Cash CAPEX is expected to be SEK 14.5 billion to SEK 15.5 billion, and cash generation sufficient to cover the minimum dividend level of SEK 2 per share.
Price action: TLSNY shares closed at $9.07 on Tuesday.

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