Telia President and CEO Patrik Hofbauer outlined a refreshed strategic direction aimed at enhancing free cash flow and optimizing capital expenditures (CAPEX).
The company is targeting a free cash flow of at least SEK 10 billion by 2027, a new metric in its financial guidance that underscores Telia’s commitment to improving shareholder value.
Patrik Hofbauer emphasized the importance of the updated strategic priorities, which are anchored in the company’s overarching goal to “Reinvent better connected living.” The three key strategic pillars—Simplify, Innovate, and Grow—are designed to streamline operations and drive growth.
“Execution of the new strategic priorities has already started with the launch of our change program, announced on September 4, which is a big step towards decentralizing the complex structure that we have today,” Patrik Hofbauer said.
Telia’s financial ambitions for the 2025-27 period include:
Service Revenue CAGR: 2 percent
Adjusted EBITDA CAGR: 4 percent
CAPEX (excluding fees for licenses, spectrum, and right of use assets): below SEK 14 billion per year
Free Cash Flow: expected to reach at least SEK 10 billion by 2027
Furthermore, for the fiscal year 2025, Telia is projecting:
Service Revenue Growth: around 2 percent
Adjusted EBITDA Growth: at least 5 percent
CAPEX (excluding fees): below SEK 14 billion
Free Cash Flow: approximately SEK 8 billion
Telia aims to leverage its network infrastructure more effectively while enhancing customer satisfaction and profitability. The new change program focuses on maximizing the value derived from Telia’s service offerings and operational efficiencies, reflecting a strategic shift that could yield improvements in both customer engagement and market competitiveness.
Anders Olsson, EVP and Head of Telia Sweden, highlighted the potential for the Swedish business to transition from stable performance to pronounced EBITDA growth, particularly with the completion of the 5G rollout and the closure of legacy 2G, 3G, and copper networks. This modernization is expected to solidify Telia’s position as a network leader in the region.
CFO Eric Hageman discussed the strategic framework designed to drive shareholder value through disciplined management of operating and capital expenditures. “Our growth algorithm, combined with a keen focus on asset management and cash flow optimization, will enhance our all-in Free cash flow per share,” he noted.
