TeliaSonera Reports Margin Squeeze in Q1

Net sales in local currencies, excluding acquisitions and disposals, increased 1.5 percent. In reported currency, net sales increased 8.8 percent to SEK 26,041 million (23,926). Service revenues in local currencies, excluding acquisitions and disposals, decreased 1.1 percent.

EBITDA, excluding non-recurring items decreased 4.3 percent in local currencies, excluding acquisitions and disposals. In reported currency, EBITDA, excluding non-recurring items, increased 2.3 percent to SEK 8,540 million (8,345). The EBITDA margin, excluding non-recurring items, decreased to 32.8 percent (34.9).

Operating income, excluding non-recurring items, decreased 12.6 percent to SEK 5,496 million (6,286).

Net income attributable to owners of the parent company decreased 5.9 percent to SEK 3,714 million (3,945) and earnings per share to SEK 0.86 (0.91).

Free cash flow increased to SEK 2,853 million (2,556) despite higher cash CAPEX, supported by lower taxes and working capital changes.

Group outlook for 2015 is unchanged.