Light Reading

TeliaSonera Reports Q1

Light Reading
News Wire Feed
Light Reading


First quarter summary

  • Net sales in local currencies, excluding acquisitions and disposals, decreased 1.8 percent. In reported currency, net sales decreased 2.5 percent to SEK 23,972 million (24,582).
  • The addressable cost base in local currencies, excluding acquisitions and disposals, increased 0.1 percent. In reported currency, the addressable cost base decreased 0.3 percent to SEK 7,010 million (7,029).
  • EBITDA, excluding non-recurring items, was unchanged in local currencies, excluding acquisitions and disposals. In reported currency, EBITDA, excluding non-recurring items, decreased 1.9 percent to SEK 8,345 million (8,509). The EBITDA margin, excluding non-recurring items, improved to 34.8 percent (34.6).
  • Operating income, excluding non-recurring items, decreased 5.2 percent to SEK 6,286 million (6,628).
  • Net income attributable to owners of the parent company decreased 4.0 percent to SEK 3,945 million (4,108).
  • Earnings per share amounted to SEK 0.91 (0.95).
  • Free cash flow increased to SEK 2,556 million (2,414).
  • Group outlook for 2014 is unchanged.

    Comments by Johan Dennelind, President and CEO
    “Our markets continue to be characterized by a changing customer behavior and an evolving convergence trend. We stay focused on upgrading our customers’ internet experience through further investments in 4G and fiber. In Sweden, our 4G coverage has approached 90 percent of population and we remain committed to reach 99 percent by the end of this year.

    In the first quarter, underlying EBITDA margin improved compared to last year and reached 34.8 percent, while organic revenues declined by 1.8 percent due to reduced low margin equipment sales and continued effects from lower regulated mobile termination rates. Free cash flow increased by 5.9 percent to SEK 2.6 billion, supported by positive working capital development.

    We continue to perform well in the consumer segment, where average billed revenue growth in Nordic Mobility Services increased to more than 3 percent, supported by all countries, as solid demand for data services compensated for slower growth in voice and messaging. We see further positive effects from our data-centric price models, which are now introduced in all Nordic markets. In Swedish Broadband Services, sales remained flat in the consumer area, as higher revenues for TV and broadband together with price adjustments compensated for lower volumes in traditional fixed services. The enterprise area remains challenging and we work hard to strengthen our position further by new products and services.

    We reached a new milestone in Spain by passing four million subscriptions in the quarter. Billed revenues remained flat compared to last year, while total sales growth was impacted by lower handset sales and reduced interconnect revenues. Higher costs for subscriber acquisitions pressured profitability, but we foresee a more balanced development going forward.

    On April 1, we implemented a new country based operating model with strengthened commercial and technology functions on group level. This will be instrumental for our future strategic agenda and will also enable further efficiency benefits. Our journey ahead will be based on three pillars; strengthen and develop our core business in the Nordic and Baltic region, take Eurasia to the next level by monetizing on the data opportunity and examine possible income opportunities in closely related adjacent industries. Geographically, focus remains on the markets where we are already present, with strict criteria for return on capital. We have a prudent but pragmatic approach to M&A and will mainly aim for potential consolidation opportunities in existing markets.

    The Board’s review of last years’ transactions in Eurasia was finalized in the quarter. As previously communicated, several of these transactions have been inconsistent with sound business practice and our ethical requirements. We continue to fully cooperate with both Swedish and foreign authorities’ requests in this matter. We have taken, and will continue to take, a number of measures to transform our internal control systems to make sure we have adequate processes to identify and manage risk going forward.

    In the regulatory area, we are concerned about the recent vote in the European parliament, particularly related to the area of net neutrality, as this may limit the possibilities for us to meet demand from our customers. We stress the importance of operators being able to run efficient networks and offer differentiated services to encourage innovation and investments.

    We reiterate our full-year outlook regarding organic revenues and EBITDA margin at approximately last year’s level with a CAPEX-to-sales of 15 percent, although we see slightly increased risk to reduced revenues related to low margin equipment sales.”

    TeliaSonera AB (Nasdaq: TLSN)

    (0)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    From The Founder
    The comms industry is rallying to the cause of open, independent interoperability testing.
    Flash Poll
    Live Streaming Video
    CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
    Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
    LRTV Interviews
    BT Updates on Plans

    10|2|15   |   03:16   |   (2) comments

    Peter Bell, CIO at Openreach, the access network division at UK incumbent BT, provides an update on the operator's trials and how Openreach is planning to deploy the broadband technology in its street cabinets.
    Telecom Innovators Video Showcase
    Sonus Shakes Up SD-WAN

    10|2|15   |   7:22   |   (0) comments

    Sonus CTO Kevin Riley sat down with Light Reading to discuss the trajectory of the company, its SDN ambitions and why Sonus is taking a market-disruptive approve to SD-WAN.
    LRTV Interviews
    CityFibre's Gigabit Vision

    10|1|15   |   03:18   |   (1) comment

    Mark Collins, director of Strategy & Public Affairs at competitive UK city network operator CityFibre, talks about his company's plans to help build Gigabit Cities.
    Telecom Innovators Video Showcase
    Automate, Scale & Create With Juniper's vCPE Solution

    10|1|15   |   6:34   |   (0) comments

    Join Kireeti Kompella, Juniper Networks CTO, and Steve Saunders, Light Reading Founder and CEO, as they discuss Juniper Networks' approach to NFV showcased with a turnkey vCPE solution, which demonstrates how service providers can use automation to rapidly deploy services.
    LRTV Interviews
    Gigabit Europe: Day 1 Takeaways

    9|29|15   |   05:47   |   (5) comments

    Light Reading's Ray Le Maistre and Iain Morris sup a beer and discuss some of the key takeaways from the first day of Gigabit Europe 2015.
    LRTV Interviews
    Gigabit in Europe

    9|29|15   |   04:24   |   (0) comments

    At the Gigabit Europe 2015 event in Munich, Heavy Reading's Graham Finnie talks about the availability of gigabit broadband in Europe.
    Women in Comms Introduction Videos
    AT&T's Band of Women

    9|28|15   |   4:36   |   (0) comments

    Brooks McCorcle, the president of AT&T's partner solutions divisions and a mathematician by trade, shares stats on AT&T's diversity and advice on how to create your own band of women at work.
    Telecom Innovators Video Showcase
    Metaswitch's New CEO Martin Lund Discusses His Role

    9|25|15   |   11:36   |   (0) comments

    Technology industry veteran Martin Lund joins Metaswitch Networks this week as the company's new CEO. In this interview, Lund discusses his new role and the industry's progress with Light Reading CEO Steve Saunders. Lund believes that the industry disruption caused by SDN and NFV is creating opportunities for companies like Metaswitch – network software providers ...
    It's All About That App

    9|23|15   |   02:15   |   (2) comments

    The long-range goal of service providers is to deliver app-specific network performance and that is showing up in technical developments today.
    Women in Comms Introduction Videos
    Verizon's Healthy Approach to WiC

    9|22|15   |   2:30   |   (2) comments

    If you think there are too few women in comms, you should see the healthcare industry. Nancy Green, Verizon's healthcare global lead, shares ideas on what we can do about it.
    LRTV Huawei Video Resource Center
    UBBF 2015 Highlights

    9|22|15   |     |   (0) comments

    Drilling down deeper into the transformation process will provide network operators with a practical look at building new businesses around a digital virtualized network architecture, and lay out some of the transition steps required, particularly in the struggle to enable more dynamic and focused enterprise network services.
    Telecom Innovators Video Showcase
    ActiveVideo's Cloud Virtualization Technology

    9|22|15   |   7:23   |   (0) comments

    ActiveVideo's CMO, Murali Nemani, discusses how virtualized CPE functions can deliver applications from the cloud to various devices at home.
    Upcoming Live Events
    October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
    November 5, 2015, Hilton Santa Clara, Santa Clara, CA
    November 17, 2015, Santa Clara, California
    December 1, 2015, The Westin Times Square, New York City
    December 2, 2015, The Westin Times Square, New York City
    All Upcoming Live Events
    Communication service providers realize that an ICT transformation is critical to their long-term survival, but most haven't yet committed to making it happen.
    Hot Topics
    Are Sports Next for Netflix?
    Mari Silbey, Senior Editor, Cable/Video, 9/28/2015
    Google Gives Huawei a US Device Boost
    Dan Jones, Mobile Editor, 9/29/2015
    Verizon's Go90 Is Live – Will Anyone Watch?
    Mari Silbey, Senior Editor, Cable/Video, 10/1/2015
    Following the Bouncing Capex Ball
    Carol Wilson, Editor-at-large, 9/29/2015
    Good News for NFV Interoperability
    Steve Saunders, CEO and founder, Light Reading, 9/29/2015
    Like Us on Facebook
    Twitter Feed
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    With so many new and exciting communications technologies now under development, it's easy to get caught up in the industry's escalating hype cycle. That's why the ...
    Last week saw a big day in the 15-year history of Light Reading when Editor-in-Chief Ray Le Maistre and I were invited to interview the Deputy Chairman and Rotating ...
    Cats with Phones
    Hold My Calls, Indefinitely Click Here