TeliaSonera reported first-quarter revenues up 8.8 percent to SEK 26.04 billion. The growth was largely due to currency effects and equipment sales, as service revenues in local currencies, excluding acquisitions and disposals, decreased 1.1 percent. Adjusted EBITDA rose 2.3 percent to SEK 8.54 billion, but fell 4.3 percent in local currencies. The EBITDA margin, excluding non-recurring items, decreased to 32.8 percent from 34.9 a year ago. Net profit fell 5.9 percent to SEK 3.71 billion. Free cash flow increased to SEK 2.85 billion from SEK 2.56 billion a year earlier despite higher cash capital expenditure, as the group benefited from lower taxes and working capital changes.
Despite the weaker results, TeliaSonera maintained its outlook for stable EBITDA this year, excluding currency and M&A effects. The operator said it expects a gradual improvement in the course of the year and continues to focus on cost control. The company said it made progress on strategic initiatives in the first quarter, with the completion of its acquisition of Tele2 Norway and achieving an agreement on dividends from Turkcell. Operations in its Eurasian markets however remained challenging, especially Kazakhstan, with organic service revenue growth only slightly positive in Q1.
