TeliaSonera Q4 net profit up 35%, organic sales rise 1.8%

News General Scandinavia 31 JAN 2013
TeliaSonera Q4 net profit up 35%, organic sales rise 1.8%
TeliaSonera reported a strong improvement in net profit and cash flow for the fourth quarter, while underlying sales growth was better than its earlier guidance. Net profit jumped 34.9 percent to SEK 6.88 billion, helped by a profit from selling shares in the Megafon IPO, and free cash flow surged to SEK 2.93 billion from SEK 552 million a year earlier, thanks to lower capex and changes in working capital. 

Adjusted EBITDA was still down 3.2 percent to SEK 8.97 billion, and revenues fell 0.7 percent to SEK 27.07 billion. Excluding currency effects and acquisitions, quarterly sales were up 1.8 percent and EBITDA was down 0.6 percent. Organic revenue growth was 1.3 percent in mobile services and 16.3 percent in Eurasia, while sales fell 2.7 percent in broadband services. 

TeliaSonera said all countries in Eurasia returned to positive revenue growth in the fourth quarter, while its mobile division benefited from higher equipment sales and better trends in service revenues in several markets. At the broadband division, growth in the fibre customer base accelerated towards the end of the year and customer satisfaction improved. Over the full year, organic revenue growth reached 1.2 percent, better than the operator's outlook of flat to 1 percent higher. 

TeliaSonera added 1.7 million new subscriptions in the last three months of the year, plus 2.3 million new subscribers at associated companies, for a total customer base of 183.0 million at end-2012. The company maintained its dividend at SEK 2.85 per share. 

For 2013, the company forecast revenues in local currencies at the same level as last year and a small improvement in the adjusted EBITDA margin, helped by the ongoing restructuring announced last October. TeliaSonera said it achieved around SEK 200 million in cost savings in Q4, out of a targeted SEK 2 billion by the end of 2014. Capex is estimated at about 14 percent of revenues in 2013, excluding licence and spectrum fees, after 14.6 percent in 2012. 

Categories:

General

Companies:

Telia,  MegaFon

Regions:

Asia,  Scandinavia

Tags:

Voice services, Financial figures, Internet Access

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