TeliaSonera mulling sell-off of Spanish unit

18 Jul 2014

Sweden’s TeliaSonera may divest its operations in Spain, with the company having confirmed in its latest financial results that amid fierce competition, and ‘forced by a strong convergence trend that puts pressure on [its] mobile-only business’, it is reviewing its future presence in the market.

In the quarter ended 30 June 2014 Yoigo, TeliaSonera’s Spanish unit, saw sales growth that was again impacted by the high levels of competition and lower equipment sales and interconnect revenues. For the period under review Yoigo recorded net sales of SEK1.805 billion (USD273 million), down from SEK2.237 billion in the corresponding period a year earlier. Mobile service revenues declined by 10.9% in local currency, excluding acquisitions and disposals, with TeliaSonera saying this drop was mainly explained by ‘lower interconnect revenues and billed ARPU erosion’. The Swedish parent did, however, note that profitability recovered due to reduced subscriber acquisition costs. Nonetheless, TeliaSonera CEO Johan Dennelind said the business remained ‘sub-scale’, with its market share said to be around 7%.

Spain, Telia Company, Xfera Moviles (Yoigo)