Telia Company AB (publ)

Q3 momentum & upgraded full-year outlook (core performance) - Service revenue growth accelerated to 3.3% YoY (from 2.8% in Q2), led by Sweden plus mission-critical and non-connectivity/project revenues (noting these can be lumpy/timing-dependent). - EBITDA grew 2.9% YoY (H1/H9 context: +3.5% YoY year-to-date), with growth somewhat slower than prior quarters but ahead of expectations due to lower-than-expected costs. - Management upgraded FY outlook for adjusted EBITDA to 3–4% (from ~3% previously) and upgraded FY free cash flow guidance to “at least SEK 9bn.” - FY service revenue guidance kept at ~2%: Q3 strength expected to be partially offset by Q4 timing/comps (management explicitly expects lower service revenue growth in Q4 vs YTD).

Cash generation, CapEx discipline, and leverage - Free cash flow (FCF) in Q3: SEK 3.7bn vs SEK 2.9bn YoY; FCF YTD: SEK 7.8bn. - CapEx controlled: SEK 12.6bn rolling 12 months, below the <SEK 13bn full-year outlook; EBITDA less CapEx ~SEK 20.3bn. - Cash conversion improved: rolling 12-month cash conversion ~62% (up ~20 bps). - Net leverage at 2.0x (down from 2.06x end-Q2), i.e., bottom end of the target range (2.0–2.5x)—creating flexibility, but also attracting questions about whether more shareholder returns are warranted.

Dividends / capital returns - Dividend paid in Q3: just over SEK 0.50 per share. - CEO/CFO emphasized FCF comfortably covers dividends: rolling 12-month FCF per share SEK 2.61 vs current annual dividend SEK 2.05. - No buyback announced in the transcript; longer-term capital allocation will be discussed in H1 2027 (CMD) and around AGM documentation/dividend timing.