For the first quarter, Telia reported EBITDA from continuing operations up 10.4 percent year-on-year, both on a reported and adjusted basis, to SEK 6.217 billion. The improvement was driven largely by cost efficiencies and higher margins in Sweden and Norway, as well as improvements in Finland and Spain. The group's adjusted EBITDA margin improved to 30.5 percent from 27.4.
Revenue fell 0.9 percent and was down 1.1 percent on an organic basis to SEK 20.394 billion. Sales in its home market Sweden declined 2.4 percent to SEK 8.835 billion, while the rest of Europe grew 1.2 percent to SEK 10.430 billion.
Telia also reported a strong increase in contribution from its affiliate companies, mainly due to Turkcell, to SEK 746 million from SEK 502 million a year ago. Telia said it's still working on selling the rest of its Eurasia operations, with market conditions challenging in several of the markets, due to weak economic conditions and currency pressures.
The company's net profit for the quarter fell to SEK 3.911 billion from SEK 4.110 billion a year earlier, after a one-time valuation benefit in Q1 2015. Cash flow fell to a negative SEK 49 million, due largely to debt repayments in the period.
Capex, excluding licence and spectrum fees, increased to SEK 3.064 billion or 17.6 percent of service revenue in Q1, from SEK 2.559 billion or 14.6 percent of service revenues a year ago. Telia reiterated its forecast for full year capex of SEK 14-15 billion for continuing operations, noting this will be the peak year for investment in fibre, mobile coverage and company transformation.
