Light Reading

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.”

    TeliaSonera AB (Nasdaq: TLSN)

    (0)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    Flash Poll
    From The Founder
    Network architects aiming to upgrade their networks to support agile, open, virtualized services in the 21st century need to consider new criteria when choosing between technology suppliers.
    Live Streaming Video
    BTE 2015 Sponsor Keynote: HP
    Dr. Prodip Sen, CTO, Network Functions Virtualization, HP
    LRTV Custom TV
    Red Hat Demo

    7|2|15   |   10:53   |   (0) comments


    Red Hat's Nicolas Lemieux demonstrates how Red Hat is driving innovation through open source communities.
    LRTV Custom TV
    Red Hat's Approach to OpenStack Adoption

    7|2|15   |   5:17   |   (0) comments


    Red Hat's Radhesh Balakrishnan outlines his company's open source strategy for both enterprises and telcos.
    LRTV Custom TV
    The New IP Goes Mobile With vEPC

    7|2|15   |   1:12   |   (0) comments


    Heavy Reading's Gabriel Brown discusses results of a Light Reading survey sponsored by Brocade that shows a clear commitment by mobile operators to move quickly to virtual EPC deployment.
    LRTV Custom TV
    Making Business Sense of SDN

    7|2|15   |   1:42   |   (0) comments


    Results of a Brocade-sponsored survey show that CSPs have a clear sense of SDN use cases but are wrestling with the business case. Sterling Perrin of Heavy Reading looks behind the numbers.
    LRTV Custom TV
    NFV Will Be Here Sooner Than You Think

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


    Forget the usual ten-year cycle for new technologies – NFV will be a core part of CSP networks in five years, based on results of a Brocade-sponsored survey, says Heavy Reading's Caroline Chappell.
    LRTV Custom TV
    The New IP Gains Traction With CSPs

    7|2|15   |   1:42   |   (0) comments


    Roz Roseboro of Heavy Reading analyzes results of a Light Reading survey sponsored by Brocade showing that CSPs are getting serious about making the transition to the New IP era.
    LRTV Custom TV
    It's (Real) Time for Analytics

    7|2|15   |   1:42   |   (0) comments


    Heavy Reading's Jim Hodges looks at how CSPs say they plan to use analytics to deploy new services in real time as part of The New IP, based on results of a survey sponsored by Brocade.
    LRTV Documentaries
    IoT in Action

    6|30|15   |   1:39   |   (7) comments


    Two co-workers discuss the benefits of IoT technology.
    LRTV Interviews
    Ericsson Opens Up on OPNFV

    6|30|15   |   14:16   |   (1) comment


    Martin Bäckström, VP and head of industry area Datacom at Ericsson, talks to Light Reading founder and CEO Steve Saunders about the emergence of OPNFV, the importance of standards and Ericsson's OPNFV plans.
    LRTV Custom TV
    NetNumber Founder Discusses NFV/SDN Impact on SP Networks

    6|26|15   |   4:15   |   (0) comments


    NetNumber Founder Doug Ranalli examines why SPs need a new network infrastructure for service agility. While NFV and SDN are the tools, the old ways of thinking about signaling control are inhibitors. Doug provides his recommendations.
    LRTV Custom TV
    Orchestrating NFV vCPE Services Across Multivendor Networks

    6|26|15   |   5:46   |   (0) comments


    Nirav Modi provides an overview of vCPE, the fastest-growing NFV use case, showing how Cyan's Blue Planet orchestrates vCPE services across a multivendor infrastructure to rapidly deliver new managed services for business customers.
    LRTV Custom TV
    ZTE at LTE Summit Amsterdam 2015

    6|26|15   |     |   (0) comments


    As one of the leading global telecommunications providers, ZTE presented its cutting-edge technology at LTE World Summit 2015 in Amsterdam. On display at ZTE's booth were the latest R&D achievements in wireless, 5G development, HetNet, deep convergence of FDD and TDD, and RCS/IMD/iSDN/vCN.
    Upcoming Live Events
    September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
    September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
    October 6, 2015, The Westin Peachtree Plaza, Atlanta, GA
    October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
    October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
    November 5, 2015, Hilton Santa Clara, Santa Clara, CA
    All Upcoming Live Events
    Infographics
    Hot Topics
    Who's Feeding Fiber to LinkNYC Hotspots?
    Mari Silbey, Senior Editor, Cable/Video, 6/29/2015
    Colt to Jettison Ailing IT Business
    Iain Morris, News Editor, 6/30/2015
    Eurobites: Activist Investor Takes Stake in AlcaLu
    Paul Rainford, Assistant Editor, Europe, 6/30/2015
    What's a Gigabit Good For?
    Carol Wilson, Editor-at-large, 7/1/2015
    Like Us on Facebook
    Twitter Feed
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    Casa Systems has been going from strength to strength over the last couple of years. In 2013, it became the first vendor to ship an integrated CCAP device -- the ...
    Cedrik Neike, SVP of Global Service Provider, Service Delivery, at Cisco, talks to Light Reading founder and CEO Steve Saunders about solving service provider customer problems in a virtualized, DevOps world, including multivendor support and the future of network procurement.
    Cats with Phones