Telia Company Interim Report January - September 2026

Third quarter summary

-         Revenue amounted to SEK 21.3 billion (19.9).

-         Service revenue increased 3.3%, like for like, driven mainly by strong development in Sweden, Norway and the Baltics.

-         Adjusted EBITDA increased 2.9%, like for like, driven by service revenue growth across most markets coupled with lower operational expenses.

-         Operating income increased to SEK 4.4 billion (4.0).

-         Total net income increased to SEK 2.9 billion (2.5) and total EPS increased to SEK 0.69 (0.60).

-         CAPEX excluding spectrum, leases and non-organic assets increased to SEK 2.9 billion (2.8).

-         Free cash flow increased to SEK 3.7 billion (2.9) and cash flow from operating activities increased to SEK 7.6 billion (7.1).

-         Leverage decreased to 2.00x compared with 2.06x in the previous quarter.

-         Dividend of SEK 0.51 per share was paid to shareholders.

-         Outlook 2026 (upgraded): Adjusted EBITDA growth, like for like, of 3-4% (previously around 3%), Free cash flow of at least SEK 9 billion (previously around SEK 9 billion).

-         Proposed further localization of operations and reduction of ~900 positions across Telia announced on October 12, targeting SEK 1 billion in annual gross savings with full effect from 2028.

Nine months summary

-         Revenue amounted to SEK 62.0 billion (59.7).

-         Service revenue increased 2.8%, like for like, driven by growth in all markets, although mainly in Sweden.

-         Adjusted EBITDA increased 3.5%, like for like, driven by service revenue growth across all markets coupled with lower operational expenses.

-         Operating income increased to SEK 11.2 billion (11.0).

-         Free cash flow increased to SEK 7.8 billion (6.9) and cash flow from operating activities increased to SEK 20.3 billion (20.1).

-         The acquisition of Bredband2 i Skandinavien AB was completed, and the company was consolidated from February.

CEO comment

"Our business momentum continues, with further improvements in customer satisfaction across our footprint. Financial results were somewhat better than anticipated, due to solid service revenue growth and lower operational expenses. As a result, we are raising our full-year EBITDA growth outlook from around 3% to 3-4%, and our full-year free cash flow outlook from around SEK 9 billion to at least SEK 9 billion. We are determined to become an even simpler, faster and more efficient company, and after the end of the quarter, we announced proposals to localize our operations further. This would strengthen the role of our country units in meeting fast-evolving customer needs and delivering profitable growth, while supporting annual gross savings of SEK 1 billion.

Commercial progress

In Sweden, the strong performance of our consumer business continued, with service revenue growth driven by TV and mobile. The integration of Bredband2 is progressing well, broadening our position in the value-driven fixed broadband sector and creating opportunities for cross-selling. Our Fello brand has Sweden's most satisfied B2C customers according to SKI's latest customer satisfaction survey, with Telia topping the B2B rankings for the 20th time in 22 years. As expected, EBITDA growth was lower, partly due to delivery of B2B customer projects with lower margins, with a rebound expected in Q4. Mission-critical revenue grew well, and after the end of the quarter, Telia was chosen as the lead partner and radio access network (RAN) supplier for Sweden's new nationwide emergency communication network.

In Finland, the consumer mobile sector remains competitive, negatively impacting customer intake. However, consumer fixed broadband is growing, supported by our co-owned fiber company Valokuitunen. Our healthy momentum in the enterprise sector continues, both with SMEs and large enterprise customers, with Telia rated number one for B2B customers in EPSI's recent survey. We completed the transfer of our Finnish enterprise cloud and capacity services to CGI, along with approximately 250 employees, in line with our strengthened focus on the core connectivity business.

In Norway, we continue our turnaround with positive EBITDA growth returning in the quarter, primarily driven by price adjustments in fixed services. Mobile customer intake strengthened, and EPSI's survey recognized Telia's OneCall brand as having Norway's most satisfied B2C mobile customers. We have finalized all significant parts of our RAN partnership agreement with ice, which we expect to deliver clear customer and financial benefits, and we are now focused on concluding regulatory discussions ahead of the planned start of operations in early 2027.

In Lithuania, mobile and fixed services again performed well, supported by strong customer demand and price adjustments. Telia has been selected to provide critical communications, connectivity and cybersecurity infrastructure for Lithuania's Presidency of the Council of the European Union in 2027, which represents a high-profile proof-point of our trusted capabilities to secure digital environments.

Estonia continued to grow both service revenue and EBITDA, mainly due to solid performance in mobile. During the quarter, we launched an AI-powered customer service assistant that has been well received by customers and is already shortening query response times.

Technology is an important enabler of secure and resilient services for our customers and our teams. During the quarter, we strengthened our customers' digital security by launching Enhanced Caller ID and mobile DNS firewall services, and we are expanding commercial 5G standalone capabilities across our footprint. More than 70% of our workforce now use AI in their daily work, helping us identify new sales opportunities, deliver more relevant customer offerings, accelerate software development and network analysis, and provide faster customer support. Satellite-based solutions are also becoming a part of our industry ecosystem, which has always been very competitive. Our priority is to provide the highest-quality and most reliable services. To this end, we are already complementing our terrestrial networks with satellite solutions to cater for emerging demand from enterprise customers with specific use cases, while exploring opportunities to create additional value as demand develops.

Sustainability progress

Telia became the first telecom operator to score 10/10 in Global Child Forum's annual benchmark of how well companies protect and support children's rights. Suppliers representing 64% of spend in Telia's supply chain have now set science-based targets for greenhouse gas emission reductions, up 1% in the quarter, and we are actively engaging to increase this proportion further. We also launched the latest Telia Trend Report, which shows how our solutions can enable sustainable business value for companies and organizations.

Financial progress

Service revenue accelerated further in Q3, albeit with some deals expected in Q4 being brought forward by customers. With operational expenses down -2.6%, EBITDA growth increased to 2.9%, compared with the ~2% flagged last quarter. This reflects good progress on cost and capital discipline, as well as more temporary items including energy and bad debt. Free cash flow was strong, and driven by growth in EBITDA, lower CAPEX and positive working capital contribution. Our balance sheet is healthy, with leverage at 2.00x, which is at the lowest end of our target range.

Looking ahead

We are confident in delivering on our mid-term plan and financial ambitions. The progress Telia is making, combined with our upgraded full-year EBITDA growth and free cash flow outlook, and the proposals for further localization and savings presented this month, all reflect our commitment to constant improvement. Our strategy continues to deliver results, and we are fully focused on execution and on meeting the evolving needs of consumers, businesses and societies."

Patrik Hofbauer

President & CEO

In the CEO comment, all growth rates disclosed are based on the "like for like" definition and EBITDA refers to adjusted EBITDA, unless otherwise stated. See definitions for more information.

This information is information that Telia Company AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the contact person set out below, at 07:00 CET on October 22, 2026.

NOTES TO EDITORS

For more information, contact Tobias Gyhlénius, Head of Group Communications, on +46 (0)771 77 58 30, visit our newsroom and follow us on LinkedIn. To download our logo, high-resolution images of Telia leaders, offices and solutions, or B-roll footage for editorial use, visit our media bank.

ABOUT TELIA

Telia Company (STO: TELIA) is a leading telecommunications operator in the Nordic and Baltic regions. Every day, we deliver world-class connectivity and communications services to millions of customers through our sustainable and secure networks - enabling people, businesses and societies to thrive and grow. Our unique position at the center of digitalization shapes our ambition to be a trusted and progressive partner and gives us our purpose: to reinvent better connected living. Find out more at www.teliacompany.com/en.

Forward-Looking Statements
Statements made in the press release relating to future status or circumstances, including future performance and other trend projections are forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements due to many factors, many of which are outside the control of Telia Company.