TeliaSonera cuts FY outlook on mobile slowdown

Nieuws Algemeen Scandinavië 18 JUL 2012
TeliaSonera cuts FY outlook on mobile slowdown
TeliaSonera lowered its outlook for the full year due to a slowdown in key mobile markets. The operator now expects organic sales flat to 1 percent higher, versus an earlier outlook for 1-2 percent growth. Underlying sales growth slowed from 2.9 percent in Q1 to zero in the second quarter. 

The company forecast an adjusted EBITDA margin slightly lower over the full year, after earlier expecting a stable result. Adjusted EBITDA was down 2.0 percent year-on-year in Q2 to SEK 9.01 billion, and the margin fell by 1 percent point to 34.3 percent. TeliaSonera grew quarterly net profit by 10 percent to SEK 4.25 billion, thanks to a capital gain of SEK 3.01 billion from its stake in Megafon, offset by impairment charges of SEK 3.07 billion on some of its mobile activities. Free cash flow jumped to SEK 14.79 billion, thanks to a dividend of SEK 11.72 billion from Megafon. The subscriber base rose in the three months by 1.4 million at consolidated companies and 0.8 million at associate companies, to a total 174.6 million. 

The mobile division posted sales down 2.3 percent to SEK 12.58 billion, and EBITDA fell 9.0 percent to SEK 3.70 billion. Weaker sales were due to a slowdown in growth in Sweden (sales up 3.9%) and Spain (up 3.8%) and lower revenues in Finland (down 4.9%), Norway (down 6.1%) and Denmark (down 14%) due to lower voice revenues, regulatory price cuts and the move to 'bucket' price plans. The operator added just 0.2 million new mobile customers in the three months, for a total 19.4 million. 

At the broadband division, sales dropped 0.8 percent to SEK 9.09 billion, and EBITDA was down 3.6 percent to SEK 2.80 billion. Sales in Sweden fell 3.6 percent to SEK 5.05 billion, and revenues in Finland dropped 3.2 percent to SEK 1.45 billion. Both markets saw growth in TV services, but continued to suffer from lower voice revenues and PSTN subscribers. The latter fell by 121,000 in the quarter to 3.8 million, while TV subscribers grew by 30,000 to 1.2 million. 

The Eurasia activities continued to grow, with revenues up 18.9 percent to SEK 4.93 billion and EBITDA 15 percent higher at SEK 2.48 billion. While revenue growth in local currency slowed to 1.6 percent in Kazakhstan, hurt by price competition and interconnection rate cuts, Armenia sales rose 10.4 percent, Uzbekistan was up 13.9 percent, and Tajikistan increased 17.0 percent. Nepal had the strongest sales growth at 62.7 percent, while Georgia was up 3.0 percent, and Moldova grew just 0.2 percent. Capex increased to 32.6 percent of sales, or SEK 1.61 billion.

Categories:

Algemeen

Companies:

Telia,  MegaFon

Regions:

Europa,  Scandinavië

Tags:

Voice services, Financial figures, Internet Access

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