TeliaSonera reported fourth-quarter sales up 1.0 percent to SEK 27.12 billion, while sales excluding currency effects and acquisitions increased 2.1 percent. For the full year, organic sales were up 2.6 percent, just short of its outlook for an increase of around 3 percent. Adjusted EBITDA was up 3.2 percent on an organic basis and 2.1 percent on a reported basis to SEK 9.19 billion in Q4, and the margin rose to 33.9 percent from 33.5. Net profit still fell 6.3 percent to SEK 4.97 billion, and EPS dropped to SEK 1.15 from 1.18 a year earlier. The company added a net 2.4 million new subscribers at consolidated companies and 3.3 million new lines at associated companies in the quarter, for a total base of 170.0 million at year-end. Despite a drop in annual net profit and free cash flow, TeliaSonera increased its dividend to SEK 2.85 per share from SEK 2.75 a year ago. Free cash flow fell to SEK 9.63 billion from SEK 12.90 billion in 2010 due to higher capex for network expansion and licences and lower dividends from associate companies such as Turkcell.
The company said it expects organic revenues and profits to continue to grow in 2012, despite economic and industrial challenges. The outlook is for a 1-2 rise in organic sales, unchanged adjusted EBITDA margin and capex again at 13-14 percent of sales, excluding licence and spectrum fees. TeliaSonera said it will also looks for acquisition opportunities in or around its existing footprint.
The operator reported quarterly revenues from mobile activities up 3.5 percent from a year earlier to SEK 13.12 billion. EBITDA rose 6.8 percent to SEK 3.89 billion, giving a margin of 29.7 percent. This was driven by a more than doubling in profits from Yoigo in Spain. Sales growth was led by demand for smartphones and data services in Sweden, where revenues were up 9.2 percent, as well as a recovery in the Baltic states. Sales in local currencies were down 3.0 percent in Finland, 4.0 percent in Norway and 7.2 percent in Denmark, hurt by cuts to termination rates and price competition. The company cut 170 jobs in Denmark in Q4 in order to improve results; it also reported the first subscriber growth there since early 2010. Overall TeliaSonera added 0.4 million new mobile subscribers in Q4 for a total base of 19.52 million at end-2011.
At the fixed-line activities, revenues were down 4.1 percent to SEK 9.48 billion, and adjusted EBITDA was little changed at SEK 2.98 billion. Sales fell 2.9 percent in Sweden, as a return to growth in broadband was unable to offset fixed-line losses. Sales were also down 4.3 percent in Finland and 0.8 percent in Denmark, but improved in Norway and the Baltics. The number of broadband subscribers rose by 28,000 in the three months to 2.5 million, and TV subscriptions were up by 40,000 to 1.2 million, while the number of fixed-voice subscriptions decreased by 123,000 to 4.3 million.
Finally at the Eurasia activities, sales improved 9 percent to SEK 4.71 billion, and EBITDA rose 4 percent to SEK 2.38 billion. Income from associated companies Megafon and Turkcell was down 17 percent to SEK 1.69 billion, hurt by negative forex effects. The activities contributed 34.8 million subscribers, with growth over the past year strongest in Nepal, Kazakhstan and Uzbekistan.
