Published by Global Banking & Finance Review®
Posted on October 23, 2025
2 min readLast updated: January 21, 2026
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Telia's Q3 earnings beat forecasts due to cost cuts and revenue growth, raising shares by 4% and upgrading cash flow outlook.
(Reuters) -Swedish telecom operator Telia reported third-quarter core earnings slightly above market expectations on Thursday, driven by profitable service revenue growth and lower operational expenses across most of its markets.
Shares of the company rose more than 4% by 0910 GMT, leading gains on the Stockholm blue-chip index.
Telia's quarterly adjusted operating profit before depreciation and amortisation rose 4.4% on a like-for-like basis to 8.46 billion Swedish crowns ($898.52 million), a touch above analysts' average forecast of 8.45 billion crowns provided by Telia.
Service revenue grew 1% like-for-like driven by continued strong momentum in Sweden and the Baltics, Telia said.
It also upgraded its free cash flow forecast to around 8 billion crowns for 2025, from around 7.5 billion crowns previously, and said that it expected full-year capital expenditures to be around 13 billion crowns, versus a previous forecast of below 14 billion.
"The revision of the guidance is naturally positive, but it would have been even better if it had come through earnings growth," analyst Joni Grönqvist from research firm Inderes said.
Telia reiterated its annual forecast for adjusted EBITDA growth of at least 5% and service revenue growth of around 2%, both on a like-for-like basis.
Since presenting a restructuring plan in September 2024, Telia has sold non-core activities, including its TV & Media business, to cut costs and reduce inefficiencies. It also signed a preliminary agreement to divest its Latvian operations.
"We have healthy operational momentum in Sweden and the Baltics, and are executing on our plan to strengthen both revenue and overall performance in Norway and Finland," Telia CEO Patrik Hofbauer said in the earnings statement.
($1 = 9.4155 Swedish crowns)
(Reporting by Elviira Luoma in Gdansk, editing by Milla Nissi-Prussak and Matt Scuffham)
Adjusted operating profit is a measure of a company's profitability that excludes certain non-recurring items, providing a clearer view of ongoing operational performance.
Service revenue refers to the income generated from providing services to customers, as opposed to selling products. It is a key metric for service-oriented businesses.
Operational expenses are the costs required to run a business's daily operations, including rent, utilities, salaries, and other overhead costs.
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a financial metric used to evaluate a company's operating performance.
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