TeliaSonera Sales Up on Currecy Gains - Profits Flat

Published on: 24th April 2009

TeliaSonera has reported that its first-quarter sales increased by 11.5% to SEK 27.2 billion (US$3.25 billion), thanks largely to currency fluctuations. EBITDA, excluding non-recurring items, increased 13.7 percent to SEK 8.8 billion (US$1 billion).

Net income dropped slightly to SEK 4.44 billion (US$$538 million) from SEK 4.47 billion a year ago.

During the quarter the number of subscriptions grew by more than 2.2 million, whereof 0.9 million new subscriptions in the majority-owned operations and over 1.3 million in the associated companies, to 137.0 million in total.

Lars Nyberg, President and CEO said "In Mobility Services, cost efficiency has to improve. We need to safeguard our profitability as sales are lowered in several markets by weaker equipment sales and reduced roaming due to less business travel. Regulatory intervention is also putting pressure on prices in all markets. At the same time it is very encouraging to see that the usage of mobile data is increasing substantially."

Looking ahead, he said that "it is essential for TeliaSonera to reduce cost especially in a period of increasing unemployment and we will also continue to scrutinize ways to reduce capital expenditure to preserve a strong cash generation."

He also noted that TeliaSonera is very well equipped to meet the demands presented by a difficult economic environment and capture any opportunities that may arise. Excluding any acquisitions, the company is expecting sales and income for 2009 to be largely flat compared to 2008.

 

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