TeliaSonera’s thriftiness reaps profit rise, record EBITDA

Nordic telecoms giant TeliaSonera has reported that its net profit in the third quarter of 2009 rose by a higher than expected 6% year-on-year to SEK5.04 billion (USD723 million), on revenues that climbed 4.8% to SEK27.07 billion, as its cost-cutting strategies offset negative effects of the economic climate as well as regulatory intervention. The Stockholm-based fixed line, mobile and broadband operator’s EBITDA excluding one-time items rose 9.1% y-o-y to a quarterly record SEK9.76 billion in the three months to the end of September, giving a margin of 36.1%, up from 34.7% a year earlier. TeliaSonera added a total of 4.2 million subscribers in the quarter under review, giving it 143.9 million at the end of September. Whilst the company said that its broadband services earnings margin was likely to be less in Q4 2009 than in Q3, it affirmed its overall full-year 2009 outlook, with total sales expected to be in line with or slightly below 2008’s level and a higher adjusted EBITDA margin.