0.25%
5.14%
1.62%
4.11%
28.22%
-12.21%
-19.77%

Company Description

Telia Company AB (publ) provides communication services in Sweden, Finland, Norway, Denmark, Lithuania, Estonia, and Latvia.The company offers mobile, broadband, television, and fixed-line services to businesses, individuals, families, and communities.It provides networking, cloud and security, mobility, enterprise mobile network, contact center, managed mobility services, collaboration solutions, enterprise telephony, Internet of Things (IoT), carrier ethernet, dedicated internet access, wavelengths, IP Transit, dark fiber, colocation, and IoT connectivity solutions, as well as broadcasting and content production services, and customer financing services.


The company markets its products and services under the Telia, halebop, Fello, TV4, C More, MTV, MyCall, OneCall, Phonero, Call me, Mit tele, Diil, Lmt Okarte, Telia Latvija, Cloudy, Tet, and Ezys brands for logistics, public transport, manufacturing, retail, utilities, building, and public sector industries.It has 18.1 million mobile subscriptions, 1.0 million fixed telephony subscriptions, 2.9 fixed million broadband subscriptions, and 3.4 million TV subscriptions.The company was formerly known as TeliaSonera AB (publ) and changed its name to Telia Company AB (publ) in April 2016.


Telia Company AB (publ) was founded in 1853 and is headquartered in Solna, Sweden.

Market Data

Last Price 32.71
Change Percentage 0.25%
Open 32.41
Previous Close 32.63
Market Cap ( Millions) 128619
Volume 2899391
Year High 34.35
Year Low 23.98
M A 50 31.13
M A 200 30.32

Financial Ratios

FCF Yield 5.68%
Dividend Yield 4.59%
ROE 12.98%
Debt / Equity 169.88%
Net Debt / EBIDTA 283.83%
Price To Book 2.32
Price Earnings Ratio 18.17
Price To FCF 17.6
Price To sales 1.44
EV / EBITDA 7.17

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Mobile Service - Mobile End User

Expected Growth : 2.5 %

What the company do ?

Mobile End User from Telia Company AB (publ) provides mobile services to individual customers, offering voice, data, and digital services in Sweden and beyond.

Why we expect these perspectives ?

Telia Company AB's 2.5% growth in Mobile Service - Mobile End User segment is driven by increasing mobile penetration in the Nordic region, rising demand for data-intensive services, and the company's strategic focus on 5G network expansion and digitalization. Additionally, competitive pricing and innovative offerings have contributed to customer acquisition and retention.

Segment nΒ°2 -> Equipment

Expected Growth : 1.8 %

What the company do ?

Telia Company AB (publ) provides a range of equipment including routers, modems, and set-top boxes to support its telecommunications services.

Why we expect these perspectives ?

Telia Company AB's equipment segment growth of 1.8% is driven by increasing demand for 5G network infrastructure, IoT devices, and cloud-based services. Additionally, the company's focus on digital transformation, cost savings initiatives, and strategic partnerships contribute to the growth. Furthermore, the rising need for network upgrades and expansions in the Nordic region also supports the segment's growth.

Segment nΒ°3 -> Fixed Service - Broadband

Expected Growth : 2.2 %

What the company do ?

Fixed Service - Broadband from Telia Company AB (publ) provides high-speed internet access to residential and business customers in Sweden and other European markets.

Why we expect these perspectives ?

Telia Company AB's Fixed Service - Broadband growth of 2.2% is driven by increasing demand for high-speed internet, government initiatives for digitalization, and investments in fiber-optic infrastructure. Additionally, the company's focus on customer experience, competitive pricing, and bundled services contribute to the growth.

Segment nΒ°4 -> Fixed Service - Television

Expected Growth : 1.5 %

What the company do ?

Fixed Service - Television from Telia Company AB (publ) offers TV services, including live TV, on-demand content, and streaming capabilities to customers in Sweden and beyond.

Why we expect these perspectives ?

Telia Company AB's Fixed Service - Television segment growth of 1.5% is driven by increasing demand for high-quality content, expansion of fiber-optic networks, and strategic partnerships. Additionally, the company's focus on bundling TV with broadband and mobile services, as well as investments in digitalization and customer experience, contribute to the growth.

Segment nΒ°5 -> Fixed Service - Business Solutions

Expected Growth : 2.8 %

What the company do ?

Fixed Service - Business Solutions from Telia Company AB (publ) offers customized communication solutions for businesses, including data, voice, and IT services.

Why we expect these perspectives ?

Telia Company AB's Fixed Service - Business Solutions segment growth of 2.8% is driven by increasing demand for digitalization and cloud-based services among Nordic enterprises, coupled with the company's strategic investments in 5G and IoT infrastructure, as well as its strong market position and customer relationships.

Segment nΒ°6 -> Advertising

Expected Growth : 3.0 %

What the company do ?

Telia Company AB (publ) advertising offers targeted and measurable ad solutions across TV, digital, and outdoor channels, helping businesses reach their desired audiences.

Why we expect these perspectives ?

Telia Company AB's 3.0% advertising growth is driven by increasing demand for digital marketing services, expansion into new markets, and strategic partnerships. The company's focus on data-driven advertising solutions and investments in emerging technologies such as AI and 5G also contribute to its growth.

Segment nΒ°7 -> Fixed Service - Other

Expected Growth : 1.2 %

What the company do ?

Fixed Service - Other from Telia Company AB (publ) provides miscellaneous fixed-line telecommunications services, including data communication and internet access.

Why we expect these perspectives ?

Telia Company AB's Fixed Service - Other segment growth of 1.2% is driven by increasing demand for digital services, expansion of fiber-optic networks, and growing adoption of IoT solutions. Additionally, the company's focus on cost optimization and operational efficiency has contributed to the growth.

Segment nΒ°8 -> Mobile Service - Other

Expected Growth : 2.0 %

What the company do ?

Mobile Service - Other from Telia Company AB (publ) provides additional mobile services beyond traditional voice and data, such as IoT, security, and cloud services.

Why we expect these perspectives ?

Telia Company AB's Mobile Service - Other segment growth of 2.0% is driven by increasing demand for mobile broadband and IoT services, expansion into new markets, and strategic partnerships. Additionally, investments in 5G network infrastructure and digitalization initiatives have improved customer experience, leading to increased revenue and market share.

Segment nΒ°9 -> Other Service

Expected Growth : 1.0 %

What the company do ?

Telia Company's Other Service segment includes digital services, data center operations, and IoT solutions, offering a range of innovative products and services.

Why we expect these perspectives ?

Telia Company AB's 1.0% growth in Other Services is driven by increasing demand for digital services, such as IoT and data analytics, as well as growth in IT services and cybersecurity solutions. Additionally, the company's focus on innovation and investments in 5G technology are expected to contribute to future growth.

Segment nΒ°10 -> Fixed Service - Telephony

Expected Growth : 1.8 %

What the company do ?

Fixed Service - Telephony from Telia Company AB (publ) provides traditional voice services, including fixed-line voice and broadband, to residential and business customers in Sweden and other European markets.

Why we expect these perspectives ?

Telia Company AB's 1.8% growth in Fixed Service - Telephony is driven by increasing demand for high-speed internet and bundled services, coupled with investments in network infrastructure and customer experience enhancements. Additionally, the company's focus on converged services and digital transformation initiatives contribute to the growth.

Segment nΒ°11 -> Mobile Service - Interconnect

Expected Growth : 2.1 %

What the company do ?

Mobile Service - Interconnect from Telia Company AB (publ) enables seamless communication between different networks, allowing users to make and receive calls, send texts, and access data services while roaming.

Why we expect these perspectives ?

Telia Company AB's Mobile Service - Interconnect segment growth of 2.1% is driven by increasing mobile data traffic, rising demand for 4G and 5G services, and growing roaming revenues. Additionally, strategic partnerships and network investments have improved interconnectivity, attracting more customers and boosting revenue.

Telia Company Ab (Publ) Products

Product Range What is it ?
Mobile Services Telia Company provides mobile voice and data services to individuals and businesses, including mobile broadband, mobile voice, and mobile data services.
Fixed Broadband Telia Company offers fixed broadband services, including fiber-based broadband, to provide high-speed internet access to homes and businesses.
TV and Media Services Telia Company provides TV and media services, including IPTV, streaming services, and on-demand content, to individuals and businesses.
Cloud and IT Services Telia Company offers cloud and IT services, including cloud infrastructure, managed services, and cybersecurity solutions, to businesses and organizations.
Network and Infrastructure Services Telia Company provides network and infrastructure services, including data center services, colocation, and network connectivity, to businesses and organizations.
IoT and M2M Services Telia Company offers IoT and M2M services, including device management, data analytics, and connectivity solutions, to businesses and organizations.

Telia Company AB (publ)'s Porter Forces

Telia Company AB (publ) faces moderate threat from substitutes, as customers have limited alternatives for telecommunications services. However, the increasing adoption of over-the-top (OTT) services and VoIP technology poses a moderate threat to the company's traditional voice and messaging services.

Telia Company AB (publ) has a large customer base, which reduces the bargaining power of individual customers. Additionally, the company's diversified product offerings and strong brand presence reduce the likelihood of customers switching to competitors.

Telia Company AB (publ) relies on a few large suppliers for network equipment and infrastructure. While the company has some bargaining power due to its size, suppliers may still exert some pressure on prices and delivery terms.

The telecommunications industry has high barriers to entry, including significant capital expenditures and regulatory hurdles. This limits the threat of new entrants and allows Telia Company AB (publ) to maintain its market position.

The telecommunications industry is highly competitive, with multiple players vying for market share. Telia Company AB (publ) faces intense competition from rivals such as Tele2, Telenor, and 3 Sweden, which may lead to pricing pressures and reduced market share.

Capital Structure

Value
Debt Weight 64.71%
Debt Cost 3.95%
Equity Weight 35.29%
Equity Cost 4.86%
WACC 4.27%
Leverage 183.39%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
TEL2-B.ST Tele2 AB (publ), a telecom operator, provides fixed and mobile connectivity and entertainment services in Sweden, Lithuania, Latvia, and Estonia. The company offers mobile telephony and data, fixed broadband, fixed …
PROX.BR Proximus PLC provides digital services and communication solutions in Belgium and internationally. It operates through Domestic, International Carrier Services, and TeleSign segments. The company offers fixed and mobile telephony, internet, …
UTDI.DE United Internet AG, through its subsidiaries, operates as an Internet service provider. The company operates through Consumer Access, Business Access, Consumer Applications, and Business Applications segments. It offers landline-based broadband …
FNTN.DE freenet AG provides telecommunications, radio and multimedia, mobile communications, mobile Internet, and digital lifestyle services in Germany. It provides a portfolio of services and products primarily in the areas of …
1U1.DE 1&1 AG, together with its subsidiaries, operates as a telecommunications provider in Germany. The company operates through Access and 5G segments. It provides broadband and mobile services; and wireless access …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
32.71$
Current Price
32.71$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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