The number of subscriptions increased to 24 million in Q4 2018 from 23.2 million in Q4 2017, mainly due to the consolidation of Get and TDC Norway.
Adjusted EBITDA of Telia Company rose 3.3 percent to SEK 6.735 billion and the adjusted EBITDA margin fell to 30.3 percent from 30.8. Adjusted operating income fell 18.7 percent to SEK 2.993 billion.
Telia Company reported net loss of SEK 1.095 billion in Q4 as against a net profit of SEK 792 million.
Telia said it will aim to accelerate the core service revenues, focusing on increasing the average price per user, strengthening cost focus. “We implemented a new operating model as of January 1, 2019, to increase focus on commercial execution, improved scale benefits and cost reductions,” Telia CEO Johan Dennelind said.
Telia CEO Johan Dennelind will reveal how the company will manage its cost base at the upcoming capital markets day in Stockholm on March 21, 2019. The company did not reveal any plan for job cut.
Telia has achieved SEK 1.3 billion via the cost reduction program versus the target of SEK 1.1 billion, leaving the adjusted EBITDA to grow by 1.7 percent. Telia targets to achieve 3 percent cut in the Swedish operating expenses in 2019.
Telia said its Capex increased to SEK 5.888 billion in Q4 2018 from SEK 4.434 billion in Q4 2017. Capex rose to SEK 16.361 billion from SEK 15.307 billion.
Telia Sweden’s Capex grew to SEK 2.615 billion from SEK 1.930 billion due to the acquisition of 700 MHz spectrum. Telia acquired 2×10 MHz in the 700 MHz band. The price for the spectrum block was SEK 1.4 billion, including SEK 0.3 billion referring to coverage obligation.
Telia Finland’s Capex increased to SEK 1.121 billion from SEK 617 million due to the acquisition of spectrum in the 3.5 GHz band.
Telia Norway’s Capex increased to SEK 606 million from SEK 402 million. Telia launched its first 5G test network at the Odeon cinema theater in Oslo.
Telia Denmark’s Capex increased to SEK 160 million from SEK 142 million. Telia Lithuania’s Capex fell to SEK 113 million from SEK 186 million. Telia Estonia’s Capex increased to SEK 252 million from SEK 137 million.