TeliaSonera saw its Q3 net sales decrease 3.2 percent to SEK 25.842 billion in reported currency and remain unchanged in local currencies and excluding acquisitions. The addressable cost base in local currencies and excluding acquisitions increased 4.2 percent. In reported currency, the addressable cost base increased 0.4 percent to SEK 7.153 billion.
EBITDA, excluding non-recurring items, decreased 4.0 percent in local currencies and excluding acquisitions. In reported currency, EBITDA, excluding non-recurring items, fell 6.3 percent to SEK 9.255 billion. The EBITDA margin, excluding non-recurring items, decreased to 35.8 percent from 37.0 percent.
Operating income, excluding non-recurring items, decreased 4.2 percent to SEK 7.676 billion. Net income attributable to the owners of the parent company decreased 1.2 percent to SEK 4.803 billion and earnings per share declined slightly to SEK 1.11 from SEK 1.12. Free cash flow decreased to SEK 3.825 billion from SEK 4.776 billion, mainly due to lower EBITDA and changes in working capital.
During the quarter, the number of subscriptions grew by 4.0 million in the consolidated operations and by 1.4 million in the associated companies. The total number of subscriptions was 180.0 million. The Group outlook for 2012 remains unchanged.
Commenting on the results, president and CEO Lars Nyberg said the group's customer base is growing at a higher rate than its revenues and the group has to reverse this trend. He added that the group's ambition is to fundamentally change its business by simplifying its way of working. The group estimates this will lead to a cost reduction of some SEK 2 billion net over the coming two years. It will also include personnel reductions and the group's initial estimate is that it will affect approximately 2,000 employees or 7 percent of the total workforce in the group.
