Telia expects negative financial impact from COVID-19

Telia expects the COVID-19 pandemic will have a negative financial impact on its TV & Media unit due to declining advertising revenue.

The company states that at present the effects on the rest of Telia Company’s business are limited but the impact on TV & Media means that the 2020 outlook for the Group on EBITDA and operational free cash flow will not be reached.

”The effects from the pandemic will have a material negative financial impact primarily on the TV & Media unit. Despite an increased TV consumption, which has resulted in an increase in the reach for our already popular TV channels, Telia Company has witnessed a rapid decline in the advertising revenues. In addition, the global cancellation of sporting events has had a negative impact on our pay-TV revenues. Given the present circumstances the full impact for 2020 is difficult to estimate but our current assumptions suggests an EBITDA for the TV & Media unit in the range SEK 0-0.5 billion (2019 SEK 1.5 billion). This implies that the ambition of an operational free cash flow of around SEK 0.5 billion from TV & Media in 2020 will not be met but we cannot give a new level at this point,” says Christian Luiga, acting President and CEO of Telia Company.