& cplSiteName &

TeliaSonera Reports Q1

Light Reading
News Wire Feed
Light Reading
4/23/2014
50%
50%

STOCKHOLM --

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.”

    Telia Company

    (0)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    From The Founder
    The independent evaluation of Nokia's key virtual network functions (VNFs) was a defining moment for the Finnish giant.
    Flash Poll
    Live Streaming Video
    Charting the CSP’s Future
    Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it’s going from two industry veterans.
    LRTV Custom TV
    Cisco's Innovations in Cable

    5|26|16   |   03:18   |   (0) comments


    Marc Aldrich from Cisco discusses the latest in security, the evolution and momentum for CCAP and what the industry will be seeing next from Cisco.
    LRTV Documentaries
    Leading Lights 2016 Highlights

    5|25|16   |   02:26   |   (1) comment


    Some of the high points from this year's Leading Lights awards dinner at the Hotel Ella in Austin, Texas.
    LRTV Documentaries
    Light Reading Hall of Fame 2016

    5|23|16   |   05:43   |   (0) comments


    Find out who has been welcomed into Light Reading's Hall of Fame this year.
    LRTV Custom TV
    ZTE TM Forum Highlights

    5|23|16   |     |   (0) comments


    ZTE showcased its new ICT solutions at TM Forum in Nice.
    LRTV Interviews
    Gamma's MD on the Emergence of UC2

    5|20|16   |     |   (0) comments


    Gamma Communications Managing Director David Macfarlane believes the unified communications (UC) market has reached a tipping point.
    LRTV Custom TV
    The Ultimate 5-Minute Guide to Digital Customer Engagement

    5|20|16   |     |   (0) comments


    In this short video, you will hear all about how Digital Customer Engagement is the key to meeting customer expectations, keeping them happy, and maximizing revenue. VP Product & Marketing at Pontis, Ofer Razon, breaks down for us the five essential capabilities for successful Digital Customer Engagement. Don’t miss!
    LRTV Custom TV
    NFV in 2016: Part 1 – NFV Use Cases Get Real

    5|19|16   |   05:57   |   (0) comments


    Consensus is building around the key use cases for NFV, including managed IP services at the network edge and on customer premises, which can generate new revenues from enterprises/SMBs and consumers; Evolved Packet Core to support LTE migration; and adjacent technologies, such as TAS and IMS, to support VoLTE and next-generation charging and policy control ...
    LRTV Custom TV
    Nokia's Steve Vogelsang on NFV – Part 3

    5|19|16   |     |   (0) comments


    Steve Vogelsang discusses the challenges of operational transformation and how Nokia helps its customers. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
    LRTV Interviews
    Level 3: Why UC Is In Demand

    5|17|16   |   04:12   |   (1) comment


    Andrew Edison, Level 3's senior VP of sales, EMEA region, talks about the drivers of growth in the unified communications services market.
    LRTV Custom TV
    ARM's OPNFV Action

    5|17|16   |     |   (0) comments


    At the ARM booth at MWC 2016, Joe Kidder and Bob Monkman speak to Light Reading about OPNFV and their upcoming action.
    LRTV Custom TV
    Nokia's Steve Vogelsang on NFV – Part 2

    5|16|16   |     |   (0) comments


    Steve Vogelsang gives advice to service providers on how to move to NFV. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
    LRTV Interviews
    Interoute CTO on NFV's Maturity

    5|13|16   |   06:46   |   (1) comment


    Matt Finnie, CTO at international operator Interoute, explains how NFV has made life easier in terms of logistics and how Interoute can now enable a 'software-defined moment' for its customers.
    Upcoming Live Events
    September 13-14, 2016, The Curtis Hotel, Denver, CO
    December 6-8, 2016,
    June 16-18, 2017, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Infographics
    A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
    Hot Topics
    DT: Telcos Must Escape Vendor Prison
    Iain Morris, News Editor, 5/24/2016
    AT&T to Start 5G 'Friendly' Trial by 2016 End
    Dan Jones, Mobile Editor, 5/24/2016
    Cisco's Patel Hails 'Microculture' Successes
    Iain Morris, News Editor, 5/26/2016
    Cable Is Eyeing Its Retail Options
    Mari Silbey, Senior Editor, Cable/Video, 5/25/2016
    AT&T's Margaret Chiosi Retires
    Ray Le Maistre, Editor-in-chief, 5/25/2016
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
    Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
    Animals with Phones
    Live Digital Audio

    Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.