TeliaSonera posts 7.7% Q1 profit rise, announces saving scheme

Nordic telecoms group TeliaSonera today announced a 7.7% year-on-year rise in first-quarter net profit to EUR433 million (USD588 million), on revenues that rose 3.4% to EUR2.47 billion (USD3.35 billion), thanks mainly to growth in subscriptions, and despite higher costs. The Stockholm-based fixed line, broadband and mobile operator said it aims to save EUR163 million in costs in full-year 2007, as a result of a reorganisation of its businesses, particularly in Sweden and Finland. The measures are expected to help it achieve annual gross savings of EUR250 million in 2008. CEO Anders Igel said he was happy with TeliaSonera’s top- and bottom-line growth in the quarter, but that he was concerned with margin growth in the Broadband Services unit. ‘Therefore further efficiency measures are needed,’ in addition to ongoing programs addressing the migration from traditional services, he said in a statement. TeliaSonera said it expected its sales to continue to grow this year, helping it reach its target of EUR10.88 billion in 2008. The company also forecast its net income for 2007, when excluding one-off items, to be ‘somewhat higher’ than in 2006.