Telia reports revenue loss across TV and media unit

Scandinavian telecommunications operator Telia has revealed a loss of revenue in its TV and media department, after the unit saw a 2.4% decline in service revenue driven by a softening advertising market.

In its latest interim report, the telco provider pointed the overall decline in the TV and Media division to the softening of TV advertising and ongoing challenges in Pay TV which also saw EBITDA decline by 0.8% with higher year-on-year content costs. Although Pay TV revenue was up slightly.

TV and media revenue decreased 0.6% to SEK 2,019 million and service revenue, like for like, decreased 2.4%. On top of his, subscriptions for SVOD dropped by 20,000 in the quarter.

After the end of the quarter, the provider also announced the shutting down of pay TV service C More which with TV4 Play will become one brand and  deliver a wider range of services based on a stronger slate of content.

The linear portfolio of TV4 increased its share of viewing to 33% compared to 30% in the corresponding quarter of last year. Despite a continued growing demand for digital advertising, total advertising revenue fell by 5.4% in the quarter as a result of soft advertising market.

The company is currently restructuring its TV and Media business under the TV4 and MTV brands, with a planned launch of the  TV4 Play expected after the summer. It also plans to consolidate their premium sports content portfolio to improve synergies and enhance our offer for both current subscribers and advertisers, and new customers.

According to the company, this will provide a gradual redesign of the content portfolio and content rights overall to offer a broader and richer set of viewing and advertising options.

Elsewhere, the Telco operations, service revenue increased 2.4% on a like for like basis. In Finland and Norway, the company saw growth in both mobile and fixed services. Revenue in Finland increased 9.2% to SEK 3,957 million like for like and revenue increased 2.5% mainly driven by increased service revenue. While in Norway revenue increased 3.2% to SEK 3,764 million (3,649) like for like and EBITDA grew 2.7% this is a slightly higher rate than in the previous quarter, driven by the 5G roll-out expansion into new regions.

The company also recently announced Danish energy and telecoms company Norlys has signed a preliminary agreement with Telia Company to buy the Danish part of Telia’s business for DKK6.25 billion (€838 million).

Allison Kirkby, President & CEO of Telia said, “Looking ahead, our full-year outlook is unchanged.  With energy headwinds starting to subside, pricing initiatives in place, and peak network investment now behind us, 2023 is a year for us to restore confidence in our strategy and improve cash generation, despite current challenges in TV and Media. That being said, we remain vigilant to continued macro-economic uncertainty and responsive to rapid changes in customer behaviors and expectations and will take necessary actions to respond to the changing environment.”