Telia Lietuva (TEL1L) Q3 2024 earnings summary

Executive summary

• Service revenue grew 4.2% year-over-year, driven by double-digit growth in billed mobile services; equipment sales declined 6.5%.

• Adjusted EBITDA margin increased by 1 percentage point to 37.6%.

• Net profit for the period rose 7.2% year-over-year.

• Free cash flow increased by 42.4%, while Capex decreased by 1.9%.

• Workforce reduction of 200 planned by end of 2024 as part of a group-wide change program, with expected annual savings of EUR 6.3 million.

Financial highlights

• Revenue for 9 months of 2024 reached €360.1m, up 1.9% year-over-year.

• Adjusted EBITDA (excluding non-recurring items) was €135.2m, up 4.7%.

• Net profit totaled €59.3m, a 7.2% increase year-over-year.

• Free cash flow was €84.4m, up 42.4% from the prior year.

• Capex for the period was €43.3m, down 1.9% year-over-year.

Outlook and guidance

• Updated group strategy focuses on simplification, innovation, and growth, with decentralization and streamlining underway.

• Group-wide change program aims to simplify operations and reduce personnel by 3,000 in 2024; local restructuring in Lithuania to yield EUR 1 million in charges and EUR 6.3 million in annual savings.

• Focus on digitization, AI adoption, and legacy system decommissioning to drive future growth.