Focus areas for Telia Company’s Capital Markets Day
- 2019-03-26 06:00 UTC
Today, Telia Company hosts a Capital Markets Day in Stockholm where the Group Executive Management presents updates on strategic direction, financial priorities and announces new sustainability targets. The event starts at 08:00 CET and can be followed through a webcast available at www.teliacompany.com.
Having finalized the exit from Eurasia in all material aspects, Telia Company wants to give an update on the prospects for the Nordic and Baltic operations. The key priority for the last years has been operational free cash flow generation, and that is something Telia Company will relentlessly continue to focus on.
- Telia Company reiterates the full year operational free cash flow outlook for 2019 which is expected to reach SEK 12.0-12.5 billion, and the ambition is to sustain and grow this level also for 2020 and 2021.
- As stated in connection to the fourth quarter results 2018 and now based on January and February trading, Telia Company reiterates that the EBITDA development the first half of 2019 will be weaker than the second half. For the first quarter of 2019, the underlying organic EBITDA decline is expected to be slightly more than the corresponding decline in the fourth quarter of 2018 (excluding M&A and the IFRS16 impact). This is driven by a combination of the three main countries but is not impacting the full year operational free cash flow outlook for 2019.
- The operational expenses of approximately SEK 24 billion are expected to be reduced by around 2 percent annually 2019-2021 on a net basis.
- Part of the operational expense reduction is driven from the implementation of the new operating model. The impact will be gradual with a target of reducing costs by 10-15 percent by 2022 on a cost base of around SEK 6 billion.
- The cash flow synergies from the Get/TDC acquisition in Norway is expected to reach a full run-rate of NOK 800 million (previously NOK 700 million) by the end of 2021. The realization will be front-end loaded with an ambition of NOK 450 million for 2020.
- The ambition on reducing net working capital has been increased from SEK 5 billion to SEK 6 billion, of which SEK 3.6 billion has been realized 2017-2018.
- Telia Company also announces new green commitments for 2030, focusing on zero CO2-emissions and zero waste. Through these targets Telia Company sets a standard and direction throughout the value chain, with requirements to the supplier base and motivation for customers to follow. These commitments are in line with the company’s business strategy and the increased demand from customers and society as a whole.
For more information, please contact our press office +46 771 77 58 30, visit our Newsroom or follow us on Twitter @Teliacompany.
Statements made in the press release relating to future status or circumstances, including future performance and other trend projections are forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements due to many factors, many of which are outside the control of Telia Company.
We’re Telia Company, the New Generation Telco. Our approximately 20,000 talented colleagues serve millions of customers every day in one of the world’s most connected regions. With a strong connectivity base, we’re the hub in the digital ecosystem, empowering people, companies and societies to stay in touch with everything that matters 24/7/365 - on their terms. Headquartered in Stockholm, the heart of innovation and technology, we’re set to change the industry and bring the world even closer for our customers. Read more at www.teliacompany.com