TeliaSonera 3Q Net Profit Rises To SEK5.4 Billion, Proposes SEK10 Billion Dividend

STOCKHOLM -(Dow Jones)- Telecommunications operator TeliaSonera has reported a 6.8% increase in third-quarter net profit, and said an extraordinary dividend would be given in 2007.

Net profit rose to 5.40 billion Swedish kronor ($839.57 million) from SEK5.05 billion in the same period a year ago, beating analyst expectations of SEK4.89 billion.

Revenue grew to SEK24.80 billion from SEK23.16 billion, surpassing expectations of SEK24.41 billion. TeliaSonera's earnings before interest, taxes depreciation and amortization, or Ebitda, excluding non-recurring items, fell 5.2% to SEK7.52 billion from SEK7.93 billion. Ebitda fell slightly to SEK8.71B billion from SEK8.76 billion in 2006, but it still topped analysts' expectations of SEK8.37 billion.

"Group earnings were the best ever in the third quarter, driven by strong sales growth and substantial profit contributions from our minority owned operations in Eurasia," said the new Chief Executive Lars Nyberg. "The underlying market trends in the third quarter were unchanged from the second quarter."

The company said in addition to the ordinary dividend of at least 40% of the net income, it intends to propose the excess capital be returned to shareholders, after considering cash flow and company needs. The extraordinary dividend for 2007 will be about SEK10 billion.

TeliaSonera reiterated its forecast that annual revenue should reach SEK100 billion by 2008 and good profitability will be maintained.

It also said net income for 2007 is estimated to be somewhat higher than in 2006, excluding the positive one-off items of approximately SEK1.7 billion in 2006, due in part to gains from asset divestment and shares sold in Elisa

Ongoing efficiency measures are expected to give annual gross savings of SEK1.5 billion, a decrease from the previous estimate of SEK2.3 billion, as of 2008.

TeliaSonera shares closed Thursday at SEK58.25, up some 13% from three months ago, as the telecommunication sector has been viewed as a safer investment during the recent market woes.

-By Adam Ewing, Dow Jones Newswires; +46 8 545 130 95; adam.ewing@dowjones.com

(END) Dow Jones Newswires­

Posted to the site on 26th October 2007