Telia Company, under CEO Patrik Hofbauer, has highlighted how strategic network investments are powering revenue growth and subscriber gains across key markets, particularly in Sweden and the Baltics, in the third-quarter of 2025.
Telia reported a 1.1 percent increase in revenue to SEK 19.9 billion, while service revenue grew 1.0 percent, supported by strong operational performance in Sweden and the Baltic region. Operating income rose to SEK 4.0 billion, with net income improving to SEK 2.5 billion.
Network and Capex Strategy Strengthening Growth
Telia’s network modernization and targeted capital spending continue to enhance customer experience and operational efficiency. Although Capex (excluding spectrum and leases) declined slightly to SEK 2.8 billion, the company’s investments have been focused on high-return areas — particularly fiber expansion, 5G rollout, and IT transformation projects in Sweden, Lithuania, and Estonia.
The Swedish market remains Telia’s growth engine, with service revenue up 2.0 percent, driven by over 5 percent growth in fixed services such as broadband and TV. Customer additions were strong across mobile, broadband, and TV, supported by network quality and attractive bundled offerings. Telia’s proposed acquisition of Bredband2 in early 2026 is expected to expand its fiber customer base and strengthen market share.
In Lithuania, continued IT modernization and network efficiency improvements fueled mid-single-digit revenue growth and high-single-digit EBITDA growth. Customer satisfaction reached new highs following a major backend IT transformation.
Estonia also showed positive momentum, with growth in both mobile and fixed services, and rising demand for ICT solutions from enterprises and the public sector.
Operational Turnaround in Finland and Norway
In Finland, network-driven improvements are stabilizing the mobile market share and boosting customer numbers in both consumer and SME segments. EBITDA margins have strengthened year-to-date, reflecting efficiency gains.
Norway, though facing a temporary service revenue decline due to lower wholesale traffic, is seeing growth in mobile end-user revenues and high enterprise customer satisfaction, led by its Phonero brand. Telia plans to restore full revenue growth in Norway within 12 months through focused investment and performance improvements.
Sustainability and Efficiency at the Core
Telia’s network investments are increasingly aligned with sustainability goals. Suppliers representing 65 percent of supply chain emissions now have Science Based Targets, while the company’s digital inclusion initiatives have reached 3.5 million people, surpassing its 2027 goal.
Financial Outlook
Strong operational execution and disciplined capital management prompted Telia to raise its 2025 free cash flow outlook to SEK 8 billion, up from SEK 7.5 billion, ensuring full dividend coverage. Full-year Capex guidance was revised down to around SEK 13 billion, reflecting efficient spending without compromising network quality.
Baburajan Kizhakedath
