Home markets hold back TeliaSonera profits

Scandinavian telecoms group TeliaSonera has reported a 30% year-on-year drop in second quarter net profit as heavy price pressure and fixed to mobile migration took its toll in the telco’s home markets of Finland and Sweden. Net income was SEK2.4 billion (USD327 million), down from SEK3.5 billion twelve months previously. Sales in Finland and Sweden were down 10% and 2% respectively, but healthier performance from operations elsewhere (Norway, Denmark, the Baltics, Central Asia, Turkey and Russia) off-set the decline, leaving total turnover up at SEK21.8 billion compared with SEK20.4 billion last year. Restructuring programs – including job cuts – are underway in both Finland and Sweden, with the company hoping to cut annual costs by up to SEK6 billion. At the end of June 2005 TeliaSonera had 27 million consolidated fixed and mobile subscribers and another 43 million in its associated companies.