Telia: Too much uncertainty on several fronts
Telia's Q1 figures were broadly in line with expectations, but the comments about the headwinds to the savings target were disappointing. As expected, the company reiterated its guidance, but with more reservations than normal given the uncertainty surrounding the economy and savings targets. We made only minor revisions to our estimates and believe that that expected return will mainly be driven by the dividend (8%). The valuation picture for the stock (2023e P/E 17x and EV/EBIT 16x) still argues for caution, especially given the elevated uncertainty.
Telia Company
Telia Company is active in the telecom sector. The company delivers a wide range of services within voice, IP and capacity services, mainly through wholly-owned international carrier networks. The customers are found among private customers and corporate customers. Most of the business is done in the Nordic countries, the Baltics, and Europe. The company was formed by a merger of Telia and Sonera. The head office is located in Solna.
Read more on company pageKey Estimate Figures2023-04-26
2022 | 23e | 24e | |
---|---|---|---|
Revenue | 90,827.3 | 94,689.8 | 97,125.5 |
growth-% | 2.81 % | 4.25 % | 2.57 % |
EBIT (adj.) | 11,310.3 | 12,022.2 | 12,695.6 |
EBIT-% (adj.) | 12.45 % | 12.70 % | 13.07 % |
EPS (adj.) | 0.53 | 1.62 | 1.83 |
Dividend | 2.00 | 2.00 | 2.05 |
Dividend % | 7.50 % | 6.39 % | 6.55 % |
P/E (adj.) | 50.27 | 19.35 | 17.05 |
EV/EBITDA | 6.27 | 6.84 | 6.75 |