By Dominic Chopping

STOCKHOLM--Telia Co. AB on Thursday backed full-year guidance but said earnings will likely be at the lower end of the range.

The Swedish telecommunications operator said it made a third quarter net profit of 1.64 billion Swedish kronor ($190.9 million), compared with SEK2.57 billion a year earlier.

Adjusted earnings before interest, taxes, depreciation and amortization--the company's preferred metric, which strips out exceptional and other one-off items--fell 4.9% to SEK7.81 billion, in line with expectations.

Net sales rose 1.2% to SEK21.27 billion.

"We are executing on our strategic priorities by expanding next generation connectivity services, improving commercial momentum through convergence, and accelerating structural cost take-out," Chief Executive Allison Kirkby said.

"Content investments, however, are impacting overall cost levels as well as pension phasing," she said.

Telia still expects 2021 service revenue and adjusted Ebitda to be flat or grow by low-single digits, with Ebitda expected in the lower end of the range. Cash capital expenditure is still seen between SEK14.5 billion and SEK15.5 billion, with the final figure likely in the mid part of the range, it said.

Service revenue and adjusted Ebitda are still expected to grow by low-single digits between 2021 and 2023.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

October 21, 2021 02:16 ET (06:16 GMT)

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