TeliaSonera Q2 profits drop on weaker associates

News General Scandinavia 20 JUL 2011
TeliaSonera Q2 profits drop on weaker associates
TeliaSonera reported second-quarter sales down 4.3 percent to SEK 25.894 billion. EBITDA, excluding non-recurring items, fell 0.9 percent to SEK 9.109 billion, and the margin increased to 35.2 percent from 34.0 a year ago. In local currencies and excluding acquisitions, net sales increased 3.0 percent, while adjusted EBITDA rose 6.5 percent. Operating profit fell 12 percent to SEK 6.974 billion, hurt by lower income from associated companies including Turkcell and Megafon. Net profit dropped to SEK 3.860 billion from SEK 5.238 billion a year ago, and EPS fell to SEK 0.89 from 1.17. Free cash flow more than halved to SEK 1.413 billion, due to higher cash capex and lower dividends from associated companies. During the quarter the number of subscribers grew by 1.7 million in the consolidated operations, while customers in the associated companies decreased by 0.3 million. The total number of subscribers was 159.4 million. TeliaSonera maintained its full-year outlook for organic sales growth of around 3 percent, with a slower rise in costs, and an improvement in the adjusted EBITDA margin. Capital expenditures will be driven by investments in broadband and mobile capacity as well as in network expansion in Eurasia, with an estimated capex-to-sales ratio of 13-14 percent in 2011, excluding licence and spectrum fees.

Categories:

General

Companies:

Telia,  MegaFon,  Turkcell

Regions:

Eastern Europe,  Scandinavia

Tags:

Voice services, Financial figures, Internet Access

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