TeliaSonera posts small rise in organic sales, profit lower

News General Scandinavia 17 JUL 2013
TeliaSonera posts small rise in organic sales, profit lower
TeliaSonera reported a small drop in profits for the second quarter, but returned to organic revenue growth. Net sales in local currencies, excluding acquisitions and disposals, increased 0.4 percent, and EBITDA on an organic basis was up 3.3 percent. In reported currency, sales decreased 3.9 percent to SEK 25.274 billion, and EBITDA was down 1.2 percent to SEK 8.928 billion. The EBITDA margin improved to 35.3 percent from 34.4 a year ago thanks to cost reductions. Net income fell 16.9 percent to SEK 4.031 billion, while free cash flow rose to SEK 4.462 billion from SEK 3.062 billion. 

TeliaSonera reiterated its full-year outlook, for flat sales on an organic basis, an EBITDA margin slightly higher than last year's 34.5 percent and capex at 14 percent of sales, excluding spectrum and licence fees. The latter is expected to accelerate in the second half of the year, after 11.9 percent in H1, and TeliaSonera said it will continue to invest in 4G and mobile coverage as well as target fibre acquisitions to meet strong demand in Sweden for the faster services. The effects of the cost savings programme announced at the end of last year will also be more visible in the second half, with much of the job cuts already completed. In total the operator targets EUR 2 billion in cost reductions by the end of 2014. 

The company finished June with a total 183.6 million subscribers. Compared to three months earlier, the consolidated operations added 1.4 million new subscriptions for a total 71.8 million, while the base at associated companies was unchanged at 111.8 million. 

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Eastern Europe,  Scandinavia

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