By Supantha Mukherjee

STOCKHOLM, (Reuters) – Norwegian telecoms operator Telia issued a positive growth forecast Friday after reporting better-than-expected quarterly core earnings. This was due to growth in service revenues in countries such as Sweden or the Baltics.

According to the company, service revenue and earnings prior to interest, tax and depreciation (EBITDA), will grow by a single-digit rate in 2022.

While telecoms is predicted to increase by low- to mid-single figures, EBITDA from TV and Media in 2021 will be lower due to greater investment in sports rights and content.

Telia Kirkby’s Chief Executive stated that Telia intends to carry on the same strategy as last year in an effort to achieve sustainable growth.

Kirkby presented plans to reduce billions of dollars by 2025. This includes shedding employees, delisting assets, streamlining operations, and boosting growth and shareholder returns.

Brookfield and Alecta have sold 49% of its towers unit. This is one of the biggest divestments. This unit has now a value of approximately 2.6 billion euro ($2.9 billion).

Telia, a joint venture partner of several European telecom companies is opting for the joint venture route.

Telia’s fourth quarter adjusted EBITDA dropped 1.6% year-on-year to 7.29 billion Swedish Crowns (7778.02million), slightly less than the 7.22 billion crowns estimate by Refinitiv analysts.

Kirkby stated that while advertising revenues are back to pre-pandemic levels which boosts TV and media businesses, roaming income is still low because international travel is yet fully recovered.

According to her, “Based upon what we observed in December we believe that the rebound from roaming will definitely begin to happen during this year.”

($1 = 9.3699 Swedish crowns

($1 = 0.8983 euros)