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Dow Jones Newswires: Telia cuts guidance amid higher energy costs, as net profit misses views

STOCKHOLM — Telia Co. AB on Friday reported slightly worse-than-expected third-quarter net profit and downgraded its guidance amid high current energy prices.

The Swedish telecommunications operator
TELIA,
-0.77%

said it made a third-quarter net profit of 1.71 billion kronor ($151.8 million), compared with SEK1.58 billion a year earlier and the SEK2.1 billion expected in a FactSet poll.

Adjusted earnings before interest, taxes, depreciation and amortization–the company’s preferred metric, which strips out exceptional and other one-off items–rose 4.3% to SEK8.07 billion, compared with an expected SEK8.05 billion.

Net sales rose 5.6% to SEK22.46 billion, against SEK22.12 billion expected.

Telia said the group’s energy costs are seen increasing by around SEK900 million for 2022 on a like-for-like basis, SEK600 million higher than it expected three months ago.

“This, and the higher interest rates, is now reflected in our expectations for operational free cash flow for 2022, which is estimated to be below the minimum dividend level,” Chief Executive Allison Kirkby said.

Telia still expects like-for-like service revenue to grow by low single digit in 2022 and between 2021-23.

However, 2022 adjusted Ebitda is now seen similar to last year, from low single digit growth seen previously.

Write to Dominic Chopping at dominic.chopping@wsj.com

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