Telia organic sales growth improves to 3% in Q1

News General Scandinavia 26 APR 2017
Telia organic sales growth improves to 3% in Q1
Telia reported improving sales trends in the first quarter, with organic sales in local currency up 3.0 percent, compared to only 0.2 percent annual growth in Q4. Reported revenues were still down 5.6 percent to SEK 19.252 billion, and adjusted EBITDA dropped 1.1 percent to SEK 6.149 billion. This led to an improvement in the EBITDA margin to 31.9 percent from 30.5 a year ago. 

Net profit jumped to SEK 6.984 billion from SEK 3.766 billion a year earlier, helped by a reduction in the provision for the expected settlement with US and Dutch authorities over the Uzbekistan activities. This is now expected to cost USD 1.0 billion, rather than USD 1.45 billion as first projected. 

Following lower taxes and a 2.5 percent drop in capex, Telia's free cash flow, in continuing and discontinued operations, increased to SEK 4.087 billion from SEK 2.293 billion. The company said some of the positive effects will wear off in coming quarters but it still expects higher free cash flow from continuing operations over the full year. Adjusted EBITDA, excluding currency and acquisition/disposal effects, is expected to be around the 2016 level.

During the quarter, Telia completed the rebranding of its operations in Finland and Lithuania to Telia, meaning all six of its wholly owned subsidiaries now operate under the same brand. 

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