Wednesday, July 17, 2013

TeliaSonera posts small rise in organic sales, profit lower

TeliaSonera – the parent company of the Ncell – reported a small drop in profits for the second quarter, but returned to organic revenue growth.
Net sales in local currencies, excluding acquisitions and disposals, increased by 0.4 per cent, and EBITDA on an organic basis was up 3.3 per cent, it said. “In reported currency, sales decreased by 3.9 per cent to SEK 25.274 billion, and EBITDA was down by 1.2 per cent to SEK 8.928 billion.”
The EBITDA margin improved to 35.3 per cent from 34.4 a year ago thanks to cost reductions. Net income fell by 16.9 per cent to SEK 4.031 billion, while free cash flow rose to SEK 4.462 billion from SEK 3.062 billion.
TeliaSonera reiterated its full-year outlook, for flat sales on an organic basis, an EBITDA margin slightly higher than last year's 34.5 per cent and capex at 14 per cent of sales, excluding spectrum and licence fees. The latter is expected to accelerate in the second half of the year, after 11.9 per cent in first half of the year (H1), and TeliaSonera said it will continue to invest in 4G and mobile coverage as well as target fibre acquisitions to meet strong demand in Sweden for the faster services.
The effects of the cost savings programme announced at the end of last year will also be more visible in the second half, with much of the job cuts already completed. In total the operator targets Euro2 billion in cost reductions by the end of 2014. 
The company finished June with a total 183.6 million subscribers. Compared to three months earlier, the consolidated operations added 1.4 million new subscriptions for a total 71.8 million, while the base at associated companies was unchanged at 111.8 million.

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