TEE: TeliaSonera AB: TeliaSonera: Interim Report January-March 2013
UK Regulatory Announcement
Improved margin and cash flow
First quarter summary
*Net sales in local currencies and excluding acquisitions decreased 0.9
percent. In reported currency, net sales decreased 4.5 percent to SEK
24,542 million (25,693).
*The addressable cost base in local currencies and excluding acquisitions
decreased 1.0 percent. In reported currency, the addressable cost base
decreased 6.0 percent to SEK 6,989 million (7,432).
*EBITDA, excluding non-recurring items, decreased 0.5 percent in local
currencies and excluding acquisitions. In reported currency, EBITDA,
excluding non-recurring items, decreased 3.9 percent to SEK 8,509 million
(8,852). The EBITDA margin, excluding non-recurring items, increased to
34.7 percent (34.5).
*Operating income, excluding non-recurring items, decreased 3.7 percent to
SEK 6,628 million (6,882).
*Net income attributable to owners of the parent company decreased 0.3
percent to SEK 4,108 million (4,122).
*Earnings per share amounted to SEK 0.95 (0.95).
*Free cash flow increased to SEK 2,414 million (2,193), mainly due to lower
*During the quarter the number of subscriptions decreased by 0.8 million in
the consolidated operations and remained unchanged in the associated
companies. The total number of subscriptions was 182.1 million.
*Group outlook for 2013 is unchanged.
Comments by Per-Arne Blomquist,
President and CEO
“Our industry continues to go through a period of change where traditional
business models are being challenged by new customer behavior. The competitive
situation remains demanding on many markets and puts pressure on overall
revenue streams. In this environment, we deliver a quarter with both improved
margins and stronger cash flow.
In the first quarter, revenues in local currencies declined by 0.9 percent
compared to the same period last year. Our business in Eurasia continued to
perform well and delivered once again double digit growth with continued
pick-up in data revenues. Mobility Services were impacted by major reductions
in regulated interconnect rates, while Broadband Services experienced higher
pressure on traditional voice revenues and were also impacted by slower
roll-out of fiber due to cold weather conditions.
In March, we took an important step on the Swedish market. As one of the first
operators in Europe we offer consumers the opportunity to connect multiple
mobile devices to one subscription, including unlimited calls and text
messages, with the possibility to share data volumes within certain buckets.
In our view, this is an innovative and attractive proposal for the customer at
the same time as we move towards a more sustainable business model in a world
where the consumption of data is increasing heavily.
In order to maintain our ability to invest in future growth, it is essential
to manage our cost base in a prudent way. We have continued to put significant
emphasis on implementing the efficiency measures initiated at the end of last
year. There were effects within Mobility Services already in the quarter,
while within Broadband Services they will come in the latter part of the year.
We remain determined to bring total costs down by SEK 2 billion net over a two
During the quarter, we finalized the strategic review of our Spanish operator
Yoigo. In early April, we announced that the sales process was terminated and
that our intention is to continue developing the business. In the first
quarter, Mobility Spain reported 19 percent revenue growth and a positive
margin trend, highlighting its future potential.
In early February, the Swedish law firm Mannheimer Swartling released its
report on TeliaSonera’s investments in Uzbekistan. The firm did not find any
substance to the allegations that we committed bribery or participated in
money laundering. However, it directed serious criticism at TeliaSonera for
shortcomings in the investment process. Over the past few years, we have put
significant effort into improving our processes and will continue to
strengthen our way of working even further.
Sustainability is of high priority, with special focus on privacy, freedom of
expression and anti-corruption. In March, TeliaSonera and the other members of
the Telecommunication Industry Dialogue signed guiding principles on
telecommunication and freedom of expression and privacy. The principles
provide guidance on how we should act to respect these basic human rights. We
also entered into a two-year collaboration with the Global Network Initiative
(GNI) to develop and expand this initiative further.”
TeliaSonera AB discloses the information provided herein pursuant to the
Swedish Securities Markets Act and/or the Swedish Financial Instruments
Trading Act. The information was submitted for publication at 07:00 CET on
April 19, 2013.
This information was brought to you by Cision http://news.cision.com
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