TeliaSonera forecasts stable EBITDA in 2016

News General Scandinavia 29 JAN 2016
TeliaSonera forecasts stable EBITDA in 2016
TeliaSonera reported fourth-quarter sales from continuing operations up 5.9 percent to SEK 22.655 billion. Service revenues in local currencies, excluding acquisitions and disposals, grew 1.1 percent. Adjusted EBITDA rose 11.1 percent to SEK 6.556 billion, and the margin improved to 28.9 percent from 27.6 a year ago. The company's net result was a loss of SEK 3.010 billion or SEK 0.70 per share, compared to a profit of SEK 2.938 billion or SEK 0.68 per share a year earlier, due to writedowns of SEK 7.20 billion, mainly on the activities in Eurasia up for sale. 

Over the full year, organic EBITDA was up 0.1 percent, better than the company's forecast for a small decline, while organic revenue growth was 2.4 percent over all of 2015. TeliaSonera said it targets stable organic EBITDA again in 2016, while the high level of investment will also continue, due to the accelerated roll-out of fibre in Sweden and restructuring of legacy IT and product systems in order to reduce costs. Capital expenditure, excluding spectrum and licence fees, is estimated at SEK 14-15 billion in 2016, versus SEK 14.285 billion last year. 

After growing free cash flow 26.9 percent in 2015 to SEK 16.550 billion, the company maintained its dividend at SEK 3.00 per share. In future it aims to pay out at least 80 percent of free cash flow based on continuing operations, with a dividend of a minimum of SEK 2 per share for 2016. 

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