Telia Company AB (publ)

Welcome, everyone, to Telia Company's Q3 2025 results presentation. And with that, I will now hand it over to Telia Company's Head of Investor Relations, Erik Strandin-Piers. Please go ahead. The floor is yours.

Thank you, Jen. Welcome, everyone, to the call. We have our CEO, Patrik Hofbauer, and our CFO, Erik Hagerman, in the room. And I hand over the word to Patrik. Please go ahead.

Thank you, Erik, and good morning. Q3 was in many ways an important quarter as it confirms that we are doing the right things for our customers. Our group at MPS, so Net Promoter Score, continued to improve and has trended positively all quarters this year. Telia Sweden again won a clear majority of awards in the customer satisfaction survey by SKI and in both Finland and Norway we had strong outcomes in the EPSIS surveys on our customer satisfaction. We also continue to deliver on the value creation plan that we laid out in Q3 last year with EBITDA growth supported by profitable growth in service revenues as well as cost efficiencies. This helped drive an increase in free cash flow, which again more than covered our 2 billion dividend for the quarter. And as we talked about already three months ago, it was an eventful M&A quarter. The closing of TV and media transactions strengthened our balance sheet further. In July, we also signed a memorandum of understanding with our partner in Latvia, and we are now working hard to ensure that both parties fulfill the commitment to sign a share purchase agreement before year-end. We have also launched a formal offer to buy Breban 2, which will strengthen our consumer business in Sweden. And finally, we are upgrading our full-year outlook for the free cash flow to around 8 billion from 7.5 billion before, reflecting, among other things, strong CapEx discipline. And we are also now changing our full-year outlook for book CapEx from 14 billion to around 13 billion. Now let's go into the financial highlights. Service revenue growth continued to be good in Sweden and the Baltics, but partly offset by decline in Norway, meaning overall growth of 1%. EBITDA growth of 4.4% was as expected a bit below the ambition for the full year, but not too much, and with both Sweden and Finland continued to perform well. capex continue to be well below our 14 billion limit and even though we expect a seasonal pickup in q4 we are already comfortable we are very comfortable sorry to lower the full year outlook to around 13 billion Free cash flow will continue to be strong, driven by higher EBITDA, lower interest payments and positive working capital movements. This, together with growth in EBITDA and proceeds from the TV and media divestment, resulted in a lower leverage and we ended the quarter at 1.93x. Moving now to Sweden, that is performing well on customer metrics. We had a strong outcome in the 2025 SGI survey. For example, Telia won the award for most satisfied enterprise mobile customers, and in consumer, Telia again had the happiest customers among the mobile main brands, and Felo came out well among sub-brands. Telia's TV service also had the most satisfied TV customers. More importantly, new customers signing up across mobile broadband and TV, as you can see here. The broadband intake stands out as it actually is a result of two good quarters rather than one, since around 10,000 new customers in Q2 were registered in Q3. The late registration was related to a transition into a new system. In Enterprise, we signed a long-term partnership with Sweden's largest train operator, SJ, to deliver high-quality communication for the entire train fleet. Financially, Sweden is well on track to reach the full-year plan, with service revenue growth at 2%, driven mainly by broadband and TV. As a reminder, revenue growth on a quarterly basis is affected by project-based revenues, which is lumpier than subscription-based revenues. In Q4, we expect more project-based revenues than we had in Q3. And EBITDA growth was again strong on the back of profitable growth and cost savings driven by the change program. Let's now move east to Finland. That came out as the number one in the EPSIS survey on customer satisfaction in both consumer and enterprise. This is promising and shows that we have good foundation in Finland to build on. Mobile net ads improved and we did not lose any mobile handset customers this quarter. The net loss was due to mobile broadband where the market is declining. Our resume base grew as did the number of consumer handset customers for the first time in a very, very long time. ARPA grow at the same time by 4%. On fiber, we are also adding customers, not least from being service provider in our Valor Coiton and JV network. Financially, we saw a slight improvement in service revenue trends with growth in consumer and a decline in enterprise driven in part by our choices to discontinue non-core activities and in part by a weak market. And finally, the strong execution of the change programme continued to give tangible savings and resulted in EBITDA growth at high senior digits, with the margin climbing to 34.6 versus 32.5 one year ago. So in summary, we are making progress on all three of our mid-term ambitions for Finland that we presented one year ago, a stabilisation of the mobile market share, improvement in SME and improved profitability. Now moving west to Norway, which is, as expected, another challenging quarter with both service revenue and EBITDA growth clearly in negative territory due to lower mobile wholesale revenue and headwinds in broadband and TV. Like for Sweden and Finland, Norway came out well in customer satisfaction surveys, with Fornero winning the EPSI survey for the fourth consecutive year in the B2B category. We expect to have reached the low point when it comes to service revenue, although not yet when it comes to EBITDA because of the timing of OPEX. So EBITDA declining Q4 is currently expected to remain similar to the levels we have seen in Q2 and Q3. The reason for headwinds in Norway are well known, and the mobile wholesale decline is expected to be around 95 million in the fourth quarter. The other part, weak performance in our fixed business is something we are addressing very actively. And on the next slide, I want to share some more information about this development. So we have now launched a new value proposition in all segments, modernized our TV platform, modernized our installed base of CPEs, signed future-proof new content agreements, and created a dedicated organization for fixed consumer services. Network quality has improved, and as you saw, we added TV and broadband customers in this quarter. At our investor update one year ago, we talked about our backbone of our network being already fully fiberized, and around 50% of our broadband customers were on fiber or fixed wireless access connections. Today, the share is around 55%. And as we have said before, this is too slow, and from next year, we will see a clear acceleration in the coax to fiber upgrades, in line with the commitment we made last year to invest more. This will be done within our existing CAPEX frame. Now moving on to Lithuania, which had a solid quarter with healthy service revenue growth supported by both mobile and fixed, something that together with continued efficiencies resulted in an EBITDA growth of 9% and the EBITDA minus CAPEX that remained at the record high level of SEK 1.6 billion on a rolling 12-month basis. At the end of the quarter, Lithuania successfully launched Telia Safe, a security add-on, and it's also completed an IT transformation within B2C. Two achievements which will help our growth journey going forward. Now let's move to Estonia, that saw both service revenue and EBITDA growth accelerating, following great momentum in especially the public sector and good work on generating efficiencies. And like for Lithuania, cash conversion remained at record levels. And with that, I hand over to Erik before I come back to summarize the quarter.