TeliaSonera’s Q2 net profit falls 26%

20 Jul 2011

Swedish telecoms heavyweight TeliaSonera has reported that net income attributable to owners of the parent company decreased by 26% year-on-year to SEK3.86 billion (USD591 million) in the second quarter of 2011, on net sales that fell by 4.3% to SEK25.89 billion in reported currency. However, the mobile, broadband, TV and wireline group also reported organic revenue growth of around 3% (in local currencies), in line with its forecast for the full year, which remained unchanged. In reported currency, EBITDA, excluding non-recurring items, fell 0.9% year-on-year to SEK9.11 billion in April-June 2011, and the EBITDA margin increased to 35.2% from 44.0% a year earlier. In TeliaSonera’s European Mobility Services division, net turnover in local currencies and excluding acquisitions increased by 5.7%, and in reported currency, net sales increased 0.9% to SEK12.75 billion. In the European Broadband Services unit, net sales in local currencies and excluding acquisitions decreased 6.7% and in reported currency, the revenue figure fell by 9.4% to SEK9.16 billion. In the group’s Eurasia mobile division, net organic local currency revenues increased by 18.4% but in reported currency, net sales decreased 1.1% to SEK4.15 billion.

During the three months to 30 June 2011 the Stockholm-based group’s number of telecoms and pay-TV subscriptions grew by 1.7 million in its consolidated operations while subscriptions in associated companies decreased by 300,000, giving total subscriptions of 159.4 million at the end of the second quarter.

Sweden, Telia Company