Telia's management is aiming, according to a press release, for a growth of 2 percent per year in terms of service revenue and an increase in profit according to the EBITDA measure of 4 percent per year, and what is called a free cash flow of at least 10 billion kronor by 2027.
It's a doubling compared to what we generated in 2023, so last year, says Hofbauer.
To distribute 7.9 billion
The cash flow created will, among other things, cover the planned dividend of 2 kronor per share, a total of 7.9 billion kronor, next year, according to the Telia CEO.
We will generate a sufficiently large cash flow in 2025 so that we cover the dividend, says Hofbauer.
A large part of the increased net cash flow is based on the fact that the reorganization, which is to be completed by December 1, where 3,000 jobs will be eliminated, falls out as planned, according to Hofbauer.
It's naturally very tough to say goodbye to 3,000 colleagues. But we're doing it to become better, faster, and simpler, he says.
"Intensive discussions"
The staff reductions and reorganization – which particularly affect the Swedish part of the organization through a more decentralized model – will reduce costs by 2.6 billion kronor per year.
I think we have a good dialogue with the union, says Hofbauer about the ongoing negotiations on the reorganization.
Now there are intensive discussions with the unions, both here in Sweden, but in all countries, really. It's about us taking down the number of employees by 3,000. But it's also about a fairly large internal reorganization where we're moving services centrally out to the countries as well. So it's a fairly large change, he adds.
