TLSNF - Telia Company AB (publ) (TLSNF) Q2 2024 Earnings Call Transcript
2024-07-18 14:10:34 ET
Telia Company AB (publ) (TLSNF)
Q2 2024 Earnings Conference Call
July 18, 2024 04:00 AM ET
Company Participants
Erik Strandin Pers - Head-IR
Patrik Hofbauer - CEO
Eric Hageman - CFO
Conference Call Participants
Oscar Ronnkvist - ABG
Andreas Joelsson - Carnegie
Stefan Gauffin - DNB
Erik Lindholm - SEB
Andrew Lee - Goldman Sachs
Nick Lyall - Bernstein
Siyi He - Citi
Steve Malcolm - Redburn Atlantic
Keval Khiroya - Deutsche Bank
Adam Fox-Rumley - HSBC
Fredrik Lithell - Handelsbanken
Usman Ghazi - Berenberg
Presentation
Operator
Welcome, everyone, to Telia Company's Q2 2024 Results Presentation. And with that, I will now hand over to Telia Company's Head of Investor Relations, Erik Strandin Pers. Please go ahead. The floor is yours.
Erik Strandin Pers
Thank you, Laura, and welcome, everyone to the call. We will do this in the usual manner, starting with a management presentation by our CEO, Patrik Hofbauer, and our CFO, Eric Hageman. So I leave the floor to you, Patrik.
Patrik Hofbauer
Thank you, Erik and good morning, and welcome, everyone. Let me start with a few overall reflections. The second quarter shows that we continue to trend well and in-line with our expectations on service revenue and EBITDA which is encouraging and shows that we have momentum to build from as we craft our value creation plan for 2025 to 2027.
Like in previous quarters, we did better for consumer -- customers. We have strengthened our TV offerings with new content, including being the first among telecom operators with Amazon Prime. We have launched new mobile offerings in Norway and reduced customer service calls and volumes in Sweden further. As a result, we see positive subscriber development, low mobile churn, increasing ARPU and higher [technical difficulty] Euro 2024 tournament and by the way, congratulations to Spain. And also saw a strong development in digital revenue, which outpaced a continued drop in linear revenue.
So all-in-all, we continue to perform well and much in-line with our own plans. Looking at the financial highlights. On the next page, momentum in our telco operation remained with service revenue growing in-line with last quarter at 2.6% and again with growth in almost all markets and growth in both mobile and fixed services. The quarter consumer was again the driving force with a 2.9% increase, but enterprise also grew 1.3% an improvement from Q1 when it was neutral. Telco EBITDA grew 4.1%, driven both by higher service revenue and better cost development. TV & Media continued to improve, both on service revenue and EBITDA, resulting in a 2.5% increase of service revenue for the group and a 5.3% increase in EBITDA.
Structural OFCF picked up materially and reached SEK1.7 billion on the back of profitable growth and a SEK0.4 billion in tailwind from pension refund phasing in Sweden. We should probably remember that we also called out in the first -- after the first quarter. So in conclusion, we are on track on service revenue, EBITDA and structural OFCF, and also on CapEx. So we confirm the outlook for the full year across all metrics. Leverage was substantially reduced down to 2.21 times from 2.43 times at the start of the quarter due to EBITDA growth that proceeds from the Danish transaction and operational cash flow generation....
Telia Company AB (publ) (TLSNF) Q2 2024 Earnings Call Transcript