STOCKHOLM, Oct 21 Reuters - Nordic telecom operator Telia posted stronger quarterly core earnings than expected by analysts as Nordic markets recovered from the effects of the pandemic.
On an adjusted basis, Telia's net sales increased 3.8% and service revenue rose 2.3%.
The highlight in the quarter was third consecutive quarter of top line growth but this time you're seeing service revenue growth in seven out of our eight business units, Chief Executive Officer Allison Kirkby said in an interview.
We are also seeing a return to growth in Sweden, which hasn't grown since 2015, she said.
Since taking over the top job last year, Kirkby has been streamlining operations and cutting costs, raising investors' hopes that she can spur growth and shareholder returns.
Telia, which sold a 49% stake in its towers unit earlier this year, said the European Commission has approved the divestment and is expected to be finalized in the fourth quarter after final regulatory approval.
The company's adjusted EBITDA earnings before interest, tax, depreciation and amortisation fell 4.9% to 7.81 billion Swedish crowns $908.81 million from a year earlier, beating the mean forecast of 7.75 billion crowns, according to Refinitiv estimates.
Kirkby attributed the decline to increased costs related to sports rights as it bought rights for tournaments such as the Champions League.