Telia delivered a stronger financial performance in the second quarter of 2026, supported by rising service revenue, expanding broadband and mobile subscriber bases in key markets, improving ARPU, disciplined operating expenses, strategic AI initiatives, and investment in digital infrastructure.
Revenue of Telia increased to SEK 20.7 billion from SEK 19.8 billion, while first-half revenue reached SEK 40.7 billion, up from SEK 39.8 billion. Service revenue climbed 2.8 percent to SEK 17.84 billion, driven by strong performances in Sweden, Norway and the Baltics, while first-half service revenue increased 2.5 percent to SEK 34.98 billion. Adjusted EBITDA rose 3.4 percent to SEK 8.38 billion, lifting the EBITDA margin to 40.5 percent, helped by lower operating expenses across the business.
Telia CEO Patrik Hofbauer said: “Our priorities remain customer satisfaction, profitable growth, and becoming even simpler, faster and more efficient.”
Telia continued to strengthen its subscriber base across several markets. In Sweden, mobile postpaid subscriptions increased by 31,000, broadband subscribers grew by 14,000, and TV subscriptions rose by 27,000. Finland added 10,000 mobile postpaid customers and 3,000 TV subscribers, while broadband subscriptions declined by 1,000.
Norway gained 2,000 mobile customers and 2,000 TV subscribers. Lithuania added 4,000 mobile subscribers, while Estonia experienced a decline of 2,000 mobile users and 3,000 TV customers. Latvia’s mobile business added 8,000 postpaid subscribers during the quarter. Telia serves around 25 million mobile, broadband and TV subscribers across its markets.
Broadband remained a major growth engine. Sweden’s broadband base reached 1.96 million subscribers, increasing by 566,000, supported by the acquisition of Bredband2. Broadband revenue reached SEK 1.99 billion in Sweden, while broadband revenue increased to SEK 313 million in Finland, SEK 410 million in Norway, SEK 234 million in Lithuania and SEK 206 million in Estonia.
Broadband ARPU showed solid improvements outside Sweden, increasing 5.5 percent in Finland to EUR 12.2, 10.3 percent in Norway to NOK 271, 7.1 percent in Lithuania to EUR 17.0, and 4.7 percent in Estonia to EUR 23.9, although Sweden’s broadband ARPU declined 8.6 percent to SEK 321.
ARPU performance reflected stronger customer monetization in most markets. Mobile ARPU reached SEK 238 in Sweden, EUR 19.3 in Finland, NOK 300 in Norway, EUR 13.4 in Lithuania, EUR 13.0 in Estonia and EUR 15.7 in Latvia. TV ARPU also improved across markets, rising to SEK 265 in Sweden, NOK 320 in Norway, EUR 13.4 in Lithuania and EUR 15.8 in Estonia.
Telia continued to improve profitability through cost discipline. Lower operational expenses contributed to 3.4 percent adjusted EBITDA growth during the quarter and 3.6 percent growth in the first half despite ongoing salary inflation. Resource costs declined, particularly in Finland, supporting improved margins and stronger free cash flow generation. Free cash flow totaled SEK 2.2 billion in Q2, while first-half free cash flow increased to SEK 4.1 billion.
Capital expenditure remained tightly controlled. Capex excluding spectrum and leases declined to SEK 2.92 billion in Q2 from SEK 3.05 billion a year earlier, while first-half Capex fell to SEK 5.49 billion from SEK 5.80 billion. Sweden invested SEK 1.07 billion, Finland SEK 292 million, Norway SEK 418 million, Lithuania SEK 159 million, Estonia SEK 131 million, Other Operations SEK 840 million, Latvia mobile SEK 137 million, and Telia Towers SEK 86 million. The company reiterated its 2026 guidance for Capex excluding spectrum and leases to remain below SEK 13 billion and free cash flow around SEK 9 billion.
Artificial intelligence and digital infrastructure remained strategic priorities. Telia signed a memorandum of understanding with KTH Royal Institute of Technology and Brookfield to jointly develop sovereign AI services and applications. The company launched Digital Arena Sweden, a national innovation platform focused on 5G, 6G and AI, while also introducing Telia IoT Connect and Telia Critical IoT Connectivity, Sweden’s first commercially available service based on 5G Standalone technology. Estonia expanded collaboration with Tallinn University of Technology on AI, cybersecurity, quantum technologies and next-generation connectivity. Telia also exceeded its 2026 target for digital inclusion, reaching approximately 500,000 individuals through digital skills initiatives.
BABURAJAN KIZHAKEDATH