TeliaSonera Profits Plunge on One-Off Write-Downs
Published on: 29th Jan 2014
Note -- this news article is more than a year old.
By: Ian Mansfield
Sweden headquartered TeliaSonera has reported a slight decline in its fourth quarter revenues and a sharp fall in its net profits and the company ended what it called a "challenging year".
Revenues for the three months to the end of December came in at SEK26.5 billion (USD4.1 billion), down 2.1 percent on the previous year.
Net profits fell by 68 percent to SEK2.19 billion (USD340 million), as the company took one-off write-downs of SEK2.5 billion relating to revaluation of assets and the scrapping of an IT platform.
The company ended the year with 189 million subscribers, a rise of 6 million over the past year.
The company's President and CEO, Johan Dennelind commented: "It is clear that 2013 was an eventful and challenging year for TeliaSonera and the telecoms industry. Overall performance was impacted by modest economic growth, regulatory effects and rapidly changing customer behavior,"
Dennelind took over as CEO in September following the board room shake-up earlier in the year sparked by the allegations surrounding the company's operations in Central Asia.
Net debt fell to SEK55.8 billion (USD8.66 billion).
The company said that it expects sales and core margin to be roughly flat in 2014 compared with 2013, excluding any possible disposals or acquisitions it might make.