TeliaSonera lowers revenue outlook on tough Spanish market

Nieuws Algemeen Scandinavië 17 JUL 2014
TeliaSonera lowers revenue outlook on tough Spanish market
TeliaSonera has cut its full-year revenue outlook, due mainly to lower handset sales at its Spanish unit Yoigo. While it previously expected flat organic sales this year, it now sees a small drop compared to 2013. Organic sales fell 1.2 percent in the second quarter and were down 1.5 percent in the first half of the year. TeliaSonera still expects to maintain a stable EBITDA margin of 35 percent and spend around 15 percent of revenues on capital expenditure. 

In the second quarter, both reported and organic revenues (excluding currency effects, disposals and acquisitions) fell 1.2 percent to SEK 25.02 billion, due mainly to lower equipment sales. Organic service revenues were down just 0.4 percent. According to the operator's new organisational structure, organic sales were stable in Sweden, down 6.6 percent in the rest of Europe and up 6.7 percent in Asia. 

Adjusted EBITDA for the group fell 1.0 percent to SEK 8.84 billion, resulting in a stable margin of 35.3 percent. Due to lower income as well as asset writedowns at its Eurasia activities, net profit fell 12.1 percent to SEK 3.55 billion. Capex was little changed year-on-year at SEK 3.52 billion, while free cash flow fell to SEK 2.47 billion from SEK 4.46 billion on higher cash capex and working capital. 

Categories:

Algemeen

Companies:

Telia,  Yoigo

Regions:

Scandinavië

Tags:

Voice services, Data services, Financial figures, Internet Access

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