Telia: A steady breeze in the sails
Despite inflationary headwinds, Telia's operational performance in Q2 continued to be good across a broad front, adding to confidence in the effectiveness of the strategy and the continued turnaround. We forecast moderate earnings growth over the next few years with a broader growth base. Additionally, strong balance sheet offers strategic room for maneuver. The main risk is related to the implementation of the strategy and, in particular, the realization of cost savings. With the decrease in the share price, the expected return on the stock, consisting of earnings growth (3%) and dividend (6%), exceeds the required return and supports a positive view.
Telia Company
Telia Company is active in the telecom sector. The company delivers a wide range of services within voice, IP and capacity services, mainly through wholly-owned international carrier networks. The customers are found among private customers and corporate customers. Most of the business is done in the Nordic countries, the Baltics, and Europe. The company was formed by a merger of Telia and Sonera. The head office is located in Solna.
Read more on company pageKey Estimate Figures20.07.2022
2021 | 22e | 23e | |
---|---|---|---|
Revenue | 88,342.6 | 89,937.6 | 91,721.7 |
growth-% | -0.95 % | 1.81 % | 1.98 % |
EBIT (adj.) | 9,928.9 | 12,126.8 | 12,697.2 |
EBIT-% (adj.) | 11.24 % | 13.48 % | 13.84 % |
EPS (adj.) | 1.54 | 1.78 | 2.03 |
Dividend | 2.05 | 2.10 | 2.15 |
Dividend % | 5.79 % | 8.31 % | 8.51 % |
P/E (adj.) | 22.96 | 14.18 | 12.46 |
EV/EBITDA | 5.88 | 5.49 | 5.42 |