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TeliaSonera to Cut 2,000 Jobs As Quarterly Profits Decline
Published on:
Sweden's TeliaSonera has reported a 3.2 percent decline in its third quarter revenues of SEK 25.85 billion (US$3.9 billion), although revenues were flat in local currencies.
Net income also fell - by 1.2 percent to SEK 4.8 billion (US$723 million). Free cash flow decreased to SEK 3.8 billion, mainly due to lower EBITDA and changes in working capital.
The company also announced a cost cutting plan that will see approximately 2,000 employees or 7 percent of the total workforce made redundant. The company aims to save some SEK 2 billion net over the coming two years.
During the quarter the number of subscriptions grew by 4 million in the consolidated operations and by 1.4 million in the associated companies. The total number of subscriptions was 180 million.
Comments by Lars Nyberg, President and CEO "The third quarter was similar to the second quarter in terms of operating trends. Our revenues in local currencies were at the same level as last year. Although Eurasia continues to deliver double-digit growth and Broadband Services reports a moderate decrease, we are experiencing weakness in service revenues in many of our markets within Mobility Services. In addition, our cost base is today growing at a higher rate than our revenues and we have to reverse this trend."
He also confirmed the company's long term plan to retain a long term strategic ownership of at least 25 percent plus one share in Russian mobile network, MegaFon, which is due to list its shares on the London stock exchange shortly.
At the same time, the preparation for a public listing of 25 percent of Kcell in Kazakhstan continues and will, if market conditions allow, be finalized before the year-end.
Group outlook for 2012 remains unchanged.
Tags: [teliasonera] [Sweden]
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