Telia Company AB
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
SEK 78.00 | Khjsbtk | Jnsyg |
Telia Earnings: TV Division Again Obscures Good Performance in Telecom
In our view, Telia had a satisfactory performance in its telecom business this quarter, with 3.2% organic growth in service revenue and 4.7% growth in EBITDA. However, this was offset by poor performance in the TV business as companies cut advertising expenditures due to recessionary fears. The TV business wiped out most of the growth, turning 4.7% EBITDA growth in telecom to flat EBITDA for the group overall. Telia´s TV business has been a drag for a long time as linear TV is a market in structural decline with lumpy variations between quarters. We maintain our SEK 29 fair value estimate.