TeliaSonera’s EBITDA climbs 1.5% despite 1.8% sales drop

17 Oct 2013

Swedish telecoms group TeliaSonera has reported a 1.8% year-on-year drop in net revenues in the third quarter of 2013 to SEK25.381 billion (USD3.904 billion), which it attributed to tough economic conditions across its operating countries alongside the enforced lowering of wholesale mobile termination rates (MTRs). However, EBITDA excluding non-recurring items for July-September 2013 climbed by 1.5% year-on-year to SEK9.419 billion, largely due to cost-cutting including redundancies, driving operating costs down 5.4% to SEK6.760 billion. Operating income (EBIT) increased by 5.4% to SEK7.130 billion in the three-month period, and the group posted quarterly net profit attributable to owners of the parent company of SEK4.641 billion, 15% higher than the SEK4.032 billion reported twelve months earlier. CAPEX spending increased to SEK4.027 billion in Q3 2013 compared to SEK3.240 billion in 3Q12. The mobile, broadband and fixed line operator ended September 2013 with 185.8 million total subscribers, a net increase of 6.9 million year-on-year. In TeliaSonera’s consolidated operations the number of subscriptions increased by 3.2 million to 72.7 million, while in associated group companies, subscriptions climbed by 3.7 million to 113.1 million. Quarter-on-quarter, in July-September subscriptions increased by around 900,000 in the consolidated operations and by 1.4 million in the associated companies.

In TeliaSonera’s European Mobility Services and Broadband Services divisions, net sales in local currencies (excluding acquisitions and disposals), decreased by 3.0% and 2.4% year-on-year in 3Q13 respectively, while in reported currency (SEK), net sales decreased by 2.1% and 4.5% to SEK12.208 billion and SEK8.252 billion respectively. It was a different story at its Eurasia mobile division, where local currency revenues grew 11.1% and reported currency revenue climbed 3.1% to SEK5.292 billion.

Sweden, Telia Company, Telia Sweden