Morningstar - Telia Company AB (TELIA) Maintaining Teliaâ€™s SEK 40 FVE After Finalizing Model, Despite Weak Q4 Results; Shares Fairly Valued

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Morningstar

Allan C. Nichols

EUR 100.00 For Business Accounts Only

Maintaining Teliaâ€™s SEK 40 FVE After Finalizing Model, Despite Weak Q4 Results; Shares Fairly Valued

Telia reported fourth-quarter revenue and EBITDA margin below our expectations but did generate strong free cash flow. While the weakness is concerning, we are maintaining our SEK 40 fair value estimate after reviewing our model. Our narrow moat rating is intact, and we believe the shares are fairly valued. The firm reported revenue grew 4.9% year over year in the quarter, but this was all currency driven. On an organic basis, revenue declined 2.9%. This caused full-year revenue growth of 4.7% t...

29/01/2019 13 EN

Underlying

Telia Company AB

Telia Company provides telecommunication services in the Nordic and Baltic countries, the markets of Eurasia, including Russia, Turkey and Spain. Co. has three business segments: Mobility Services, which comprises operations in Sweden, Finland, Norway, Denmark, Lithuania, Latvia, Estonia and Spain; Broadband Services, which comprises operations in Sweden, Finland, Denmark, Lithuania, Latvia (49.0%), Estonia and international carrier operations; and Eurasia, which comprises mobile operations in Kazakhstan, Azerbaijan, Uzbekistan, Tajikistan, Georgia, Moldova and Nepal. The business area also includes Co.'s shareholdings in OAO MegaFon, Russia and Turkcell Iletisim Hizmetleri A.S., Turkey.

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SE0000667925 Nasdaq Nordic Stockholm Sweden

Provider

Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

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Analysts

Allan C. Nichols

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Maintaining Teliaâ€™s SEK 40 FVE After Finalizing Model, Despite Weak Q4 Results; Shares Fairly Valued

Telia Company AB: 1 director

EU Telecoms: Half-time 2025 Review Sector has outperformed: More selective stock picking needed

Telia performs well/Bredband2 acquisition doesn't come cheap

Business as Usual for No-Moat Lonza; Specialty Ingredients Carve-Out on Track for 2020

Sasol Provides Full-Year Production Update

Sasol Provides Full-Year Production Update

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