TeliaSonera posts small rise in EBITDA, maintains outlook

News General Scandinavia 17 OCT 2013
TeliaSonera posts small rise in EBITDA, maintains outlook
TeliaSonera reported a small increase in third-quarter profits thanks to cost reductions and maintained its outlook for growth over the full year. While revenues were down 1.8 percent to SEK 25.38 billion, EBITDA increased 1.5 percent to SEK 9.42 billion. Excluding currency effects, acquisitions and disposals, sales were stable year-on-year and EBITDA rose 3.8 percent, as a 5.4 percent reduction in costs offset the weak economic climate and cuts to mobile termination rates. The adjusted EBITDA margin increased to 37.1 percent from 35.9 a year ago. Net profit rose 15.1 percent to SEK 4.64 billion, and free cash flow nearly doubled to SEK 7.31 billion, helped by dividends from the company's stake in Russian operator Megafon. 

The operator's new CEO, Johan Dennelind said he would work on strengthening the group's position in key markets, with an increased focus on innovation and continued cost efficiency. Following the scandal over the company's activities in Uzbekistan, which led to the downfall of the previous management, Dennelind said TeliaSonera was taking further measures to improve governance. A new compliance function has been established, reporting directly to the CEO, and a new CEO office function will support the ongoing Eurasia review and a programme to plan the company's future. In addition, a new group function for Strategy, Mergers & Acquisitions and Innovation will chart the company's future development.

Dennelind maintained the group's full-year outlook for stable organic sales and a small increase in the adjusted EBITDA margin from 34.5 percent last year. Of the 1,800 job cuts announced last year for its key markets in the Nordic and Baltic regions, nearly 1,500 have been completed already, helping generate SEK 0.8 billion in cost savings since Q3 2012. The project should be completed by early 2014. TeliaSonera maintained its capex budget for this year as well, at around 14 percent of revenues. 

Categories:

General

Companies:

Telia,  MegaFon

Regions:

Europe,  Scandinavia

Tags:

Voice services, Financial figures, Internet Access

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