Allison Kirkby, president and CEO of Telia, has revealed the telecom operator’s goals on Capex and Opex for 2021 as part of its new strategy.
Telia said it cash Capex excluding Telia Carrier and fees for license, spectrum and right-of-use assets, is expected to be in the range of SEK 14.5-15.5 billion in 2021.
Telia announced an updated strategy to create a Better Telia. The new strategy will return the company to growth and deliver sustainable value creation to shareholders. “Underpinning our growth strategy are four key pillars where we will excel relative to our peers: Inspiring our Customers; Connecting Everyone; Transforming to Digital; and Delivering Sustainably,” Allison Kirkby said.
Telia said its customer experience-led transformation program is expected to yield an improved EBITDA less Capex of SEK 3 billion and SEK 5 billion by 2023 and 2025 respectively
“As part of this program, we will reduce operational expenses by SEK 2 billion until 2023 and SEK 4 billion until 2025. I look forward to sharing the details of our strategy and transformation in our Investor Brief,” Allison Kirkby said.
Telia will be creating a new business unit called Telia Asset Management that will own and manage selected assets opening up the opportunity to bring in external investors and accelerate infrastructure development.
Telia expects annual low single digit service revenue growth, low to mid-single digit EBITDA growth and a return to cash Capex of around 15 percent of net sales by 2023.
For 2021, which will be a year of transition, service revenue and EBITDA, excluding Telia Carrier, will show flat to low single digit percentage growth while cash Capex is expected to be in the range of SEK 14.5-15.5 billion as it rolls out 5G and modernize systems and existing networks.
Telia’s fourth quarter sales dropped 1.9 percent to SEK 23,464 million (22,838). Service revenues fell 2.1 percent to SEK 19,765 million.
Operating income decreased to SEK -23,001 million (2,600) impacted by a capital loss from the disposal of Turkcell Holding of SEK -17,955 million, mainly related to reclassified accumulated foreign exchange losses which have no effect on total equity. The quarter was also impacted by an impairment of SEK -7,800 million related to goodwill in Finland.
Telia said its network leadership in Sweden was confirmed through Umlaut/P3 survey which concluded that Telia’s network is the best in Sweden – for the fourth year in a row.
Telia secured the largest block of 5G spectrum in Sweden last week to enhance and leverage its market leading position.
Telia Finland now covers 40 percent of the population with 5G. Telia Finland is seeing a positive impact on ARPU levels from 5G based subscriptions.
Telia Norway is making progress, both on 5G coverage and in the upgrade of cable network.