Telia posts SEK 8.8 bln loss on Uzbekistan settlement

News General Europe 21 OCT 2016
Telia posts SEK 8.8 bln loss on Uzbekistan settlement
Telia reported a net loss of SEK 8.81 billion for the third quarter, compared to a profit of SEK 4.59 billion a year ago, due to provisions of SEK 12.5 billion for settling investigations into alleged corruption in obtaining its licence in Uzbekistan. Underlying profit from continuing operations, which excludes its activities in Eurasia and Spain up for sale, was up 0.4 percent year-on-year to SEK  3.60 billion. 

Telia said it could not say whether the investigations were completed yet, but it felt the process is nearing an end. The company again pledged continuing improvement in its governance and published its latest Sustainability report to highlight its efforts. Telia also completed the sale of Yoigo in Spain during the past month and said it's nearing a deal to sell its stake in Fintur, the holding company for its Eurasian activities, to minority shareholder Turkcell. An agreement on this is targeted for 2017, the company said. 

Net revenue in the third quarter fell 0.9 percent to SEK 21.52 billion, and EBITDA was down fell 1.5 percent to SEK 6.85 billion. Excluding currency effects, acquisitions and disposals, revenue was down 1.2 percent and EBITDA fell 1.6 percent, in line with Telia's outlook for a slowdown in the second half of the year. Capital expenditure increased 16.4 percent to SEK 3.65 billion, and free cash flow dropped 22.2 percent to SEK 3.66 billion.

Telia maintained its full-year outlook for flat to slightly higher adjusted EBITDA, excluding currency effects, acquisitions and disposals. Annual capex, excluding licence and spectrum fees, is expected to peak this year at SEK 14-15 billion due to investment in mobile network upgrades and fibre. The dividend is targeted at a minimum SEK 2 per share, compared to SEK 3 last year. 

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General

Companies:

Yoigo,  Turkcell

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Europe

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Voice services, Data services, Financial figures, Internet Access

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