Telia Company year-end report January – December 2025

On track to deliver on 2027 ambitions

Fourth quarter summary

– Revenue amounted to SEK 21.3 billion (21.4) and increased 1.6%, like for like.

– Service revenue increased 2.1%, like for like, driven by continued strong momentum in Sweden and the Baltics.

– Adjusted EBITDA increased 3.7%, like for like, driven by service revenue growth and lower operational expenses across most markets.

– EBITDA decreased to SEK 3.7 billion (6.6), impacted by a SEK 3.7 billion non-cash provision increase related to asset retirement obligations (ARO) in Sweden and Finland.

– Operating income decreased to SEK -0.5 billion (1.3).

– Total net income decreased to SEK -1.1 billion (-0.3) and total EPS decreased to SEK -0.33 (-0.13).

– CAPEX excluding spectrum and leases increased to SEK 4.2 billion (3.9).

– Free cash flow increased to SEK 2.4 billion (0.4) driven by higher than usual working capital contribution, partly offset by increased cash CAPEX related to spectrum.

– Cash flow from operating activities increased to SEK 7.5 billion (5.2).

– Leverage was 1.93x, same as in the previous quarter.

– Dividend of SEK 0.50 per share was paid to shareholders.

– On December 22, Telia Company AB announced that it had obtained all necessary approvals from authorities for the recommended cash offer to the shareholders of Bredband2 i Skandinavien AB.

– Outlook 2026: Service revenue growth, like for like, around 2%, adjusted EBITDA growth, like for like, around 3%, CAPEX excluding spectrum and leases below SEK 13 billion and free cash flow around SEK 9 billion.

– For 2025, the Board of Directors proposes to the Annual General Meeting a dividend of SEK 2.05 per share (2.00).

Full year summary

– Revenue amounted to SEK 81.0 billion (81.0) and increased 1.8% like for like.

– Service revenue increased 1.5%, like for like, driven by Sweden, the Baltics and Other operations.

– Adjusted EBITDA increased 5.2%, like for like, due to the combination of service revenue growth and lower operational expenses.

– EBITDA decreased to SEK 27.7 billion (29.3), impacted by a SEK 3.7 billion non-cash ARO provision increase in 2025.

– Total net income declined to SEK 4.3 billion (7.8) and total EPS declined to SEK 0.90 (1.80).

– CAPEX excluding spectrum and leases declined to SEK 12.8 billion (13.4) driven by a lower investment level across the footprint.

– Free cash flow increased to SEK 9.3 billion (3.4) mainly driven by higher adjusted EBITDA, lower interest paid and higher than usual working capital contribution, partly offset by higher cash CAPEX.

– Cash flow from operating activities increased to SEK 27.6 billion (21.2).

CEO comment

“2025 was a year of significant progress for Telia. Our customers are more satisfied, and our robust and resilient offerings are more relevant than ever in today’s hyper-digital societies and complex geopolitical situation. We delivered on our EBITDA growth and cash flow targets, with consistent cost and capital discipline, and took considerable steps forward in both CAPEX efficiency and portfolio management. This puts us firmly on track to achieve our goals for 2027, including at least SEK 10 billion in free cash flow. We have momentum, and we are committed to improving performance further and addressing challenges in Finland and Norway, creating an even simpler, faster and more efficient Telia.

Commercial progress

In Sweden , we delivered a record quarter, with service revenue growth of 4.8%, driven largely by the consumer business. Continued strong performance in TV was accompanied by healthy growth in broadband and mobile. Our mobile network was again recognized as Sweden’s best in umlaut’s independent 2025 benchmark. The enterprise and public sector businesses also contributed positively, with strong deliveries of business- and mission-critical services. In December, the Swedish Competition Authority cleared our proposed acquisition of Bredband2, which is expected to close during the first quarter.

For Finland , we are reporting a weak quarter, with declines in service revenue and EBITDA. These are driven by the enterprise segment, where non-connectivity revenue was lower, mainly due to timing effects and our ongoing closure of non-core businesses. Meanwhile, enterprise and public sector customer wins were satisfactory, and SME customer growth continued. In the consumer business, service revenue was stable in a very competitive market, and customer satisfaction remains high as we continue to focus on network and customer service quality. Looking at the coming quarters, we expect service revenue and EBITDA to stabilize.

In Norway , the consumer and enterprise businesses grew service revenue by 3% and 5% respectively, which almost fully compensated for the continued effect of last year’s loss of a major mobile wholesale contract. As we flagged in the previous quarter, EBITDA continued to decline, in part due to a planned increase in marketing costs, but this trend is expected to improve. At the start of 2026, Bjørn Ivar Moen joined as Head of Telia Norway, as previously announced.

Lithuania continued to perform strongly across all main product areas. In November, Telia opened Lithuania’s first private 5G standalone network at the port of Klaipėda, before making the technology’s cutting-edge capabilities available to consumers the following month. Construction of a state-of-the-art data center near Vilnius has begun, which will support flexible sovereign cloud and communications services.

Estonia delivered modest growth, with positive contributions from all main product areas and with rising customer satisfaction among both consumers and businesses. The new Telia Shield security service was well-received in the market and took center stage in the quarter’s campaigns.

Technology is both a key enabler and critical differentiator of our offerings. During the quarter, we continued to invest in high-quality customer experiences and to simplify our IT environment. In late 2025, we completed the shutdown of 3G in Sweden and 2G in Norway, a milestone in the ongoing transition to modern 4G and 5G infrastructure.

Sustainability progress

Suppliers representing 65% of greenhouse gas emissions in our supply chain have now set science based targets approved by SBTi or equivalent. Telia’s digital inclusion initiatives have reached 3.6 million individuals since 2021, our target for 2027, and we are updating our targets accordingly. At the end of the quarter, Telia’s customers ranked us either first or second in four of our five markets for privacy, according to Telia Brand Tracker. In December, Telia was awarded an “A” score by CDP, which puts Telia in the top 4% of companies assessed.

Financial progress

We ended 2025 with an acceleration in service revenue growth, although we landed at 1.5% for the full year. This is unsatisfactory, as it is on the low side of our target of “around 2%”, and is the result of headwinds in Norway and Finland, which we are fully focused on turning around in the coming quarters. Nevertheless, we met our EBITDA growth target and delivered well above our SEK 8 billion free cash flow outlook, covering our dividend despite the divestment of the TV and Media business.

In line with our commitment to continuous improvement, we initiated union negotiations in January 2026 concerning a proposed reduction of approximately 600 positions, while opening 150 new positions in growth areas such as business- and mission-critical connectivity, national data sovereignty, and security.

Cash flow in the fourth quarter was impacted by higher than usual positive working capital contributions, with early payments by customers and a favorable inventory development. Our balance sheet is solid, with a leverage of 1.93x, just below our target range. The proposed SEK 3 billion acquisition of Bredband2 is expected to be paid in the first quarter, and we continue our work to finalize an agreement to divest our Latvian operations.

Looking ahead

One-and-a-half years into our mid-term plan, we are executing well and delivering what we have said. As a result, the Board of Directors has resolved to propose an increase in our dividend to SEK 2.05 per share (2.00), in line with the stated ambition in our dividend policy of a low- to mid-single-digit annual increase. For the coming year, we are focused on continuing to meet expectations and the evolving needs of our customers, while improving constantly in everything we do. Our 2026 outlook is around 2% growth in service revenue, around 3% in EBITDA and free cash flow of around SEK 9 billion. Inspired by the trust placed in Telia in an uncertain world by consumers, businesses, investors and governments every day, we move into 2026 humble, committed and ready to deliver.”

Patrik Hofbauer

President & CEO

In the CEO comment, all growth rates disclosed are based on the “like for like” definition and EBITDA refers to adjusted EBITDA, unless otherwise stated.