TeliaSonera’s 4Q profits rise

10 Feb 2006

Nordic telco TeliaSonera’s fourth quarter profits rose by 31% as a result of lower one-time costs due to previous acquisitions and positive exchange rate effects. The Stockholm-based group had one-time costs of SEK3.78 billion (USD489 million) in the year-earlier quarter from writing down the value of assets, shedding jobs and returning a Danish mobile licence. The company’s net income increased to SEK2.73 billion (USD354 million) from SEK2.09 billion (USD270 million) a year earlier. 4Q revenues climbed 7.6% year-on-year to SEK22.9 billion (USD2.96 billion). TeliaSonera is cutting costs, lowering prices and seeking acquisitions abroad to offset the effects of regional competition from Tele2, Elisa, TDC, Telenor and others in the saturated Nordic market. It added a total of 1.2 million new customers at its majority-owned operations in 4Q05, with the biggest additions coming from broadband, mobile and wholesale operations; it also added 3.6 million new clients at associate companies.

Denmark, Finland, Norway, Sweden, Telia Company