TeliaSonera displays fruits of organic growth in first quarter

20 Apr 2010

Stockholm-based mobile, broadband and fixed line group TeliaSonera has release its financial and operational results for the period January-March 2010, in which it heralded a ‘return to organic revenue growth’. Consolidated net revenues decreased by 3.9% to SEK26.09 billion (USD3.62 billion) in the first quarter, compared to SEK27.14 billion in the same period of 2009, but net sales in local currencies and excluding acquisitions increased by 2.5%. Group-wide quarterly EBITDA, excluding non-recurring items, increased by 1.6% year-on-year to SEK8.96 billion, raising the EBITDA margin to 34.4% from 32.5% in the year-ago period. Operating income, excluding non-recurring items, was SEK7.46 billion, down slightly from SEK7.48 billion in 1Q09, as rising EBITDA was offset by a lower combined contribution from associated companies, whilst net income attributable to owners of the parent company increased 6.4% to SEK4.72 billion. CAPEX decreased to SEK2.05 billion (SEK3.07 billion in 1Q09) and the CAPEX-to-sales ratio to 7.8% (11.3%). The group stuck with its previous forecasts, including capital expenditures to be driven by continued investments in broadband and mobile capacity as well as in network expansion at its Eurasia division subsidiaries. The CAPEX-to-sales ratio is expected to be ‘somewhat below 15%’ for full-year 2010.

The number of subscriptions at TeliaSonera’s western European and Baltic mobile division (‘Mobility’) rose by 1.1 million from the end of the first quarter 2009 to 17.2 million at end-March 2010. Its total mobile broadband subscriptions increased by 436,000 compared to the corresponding quarter last year to 1.175 million, whilst mobile data traffic more than doubled. Mobile subscriptions at the group’s Eurasia division rose from 19.018 million at end-March 2009 to 23.015 million a year later. Fixed broadband access subscriptions (all in Europe) rose to 2.354 million, a modest increase of 54,000 year-on-year, and total TV subscriptions rose by 135,000 in twelve months to 823,000 as of end-March 2010, of which 633,000 were IPTV subscriptions. That month TeliaSonera launched a full scale IPTV product in Finland. Meanwhile, its fixed line voice customers decreased by 586,000 year-on-year to 5.074 million, whilst the net intake of VoIP subscriptions was 127,000 in the same twelve months, bringing the total to 255,000 at end-March 2010. Overall, TeliaSonera said its total number of subscribers including associated operations (including MegaFon in Russia, Turkcell in Turkey and Astelit in Ukraine) totalled 149.9 million at 31 March 2010.

Sweden, Telia Company