TeliaSonera’s consolidated group net sales increased 8.5% to SEK27.115 billion (USD3.178 billion) in the second quarter of 2015, compared to SEK24.985 billion in the same period last year. Net sales in local currencies (excluding acquisitions and disposals) increased 1.9%, while service revenues in local currencies, excluding acquisitions and disposals, decreased 1.3%. EBITDA (excluding non-recurring items) decreased 4.0% in local currencies, while in reported currency EBITDA increased 4.0% to SEK9.190 billion (compared to SEK8.836 billion in 2Q14). The EBITDA margin fell to 33.9% (35.4%). Operating income (EBIT) dropped 7.6% to SEK5.862 billion (SEK6.347 billion) and net income attributable to owners of the parent company decreased 8.1% to SEK3.258 billion (SEK3.545 billion).
In TeliaSonera’s domestic market Sweden, net sales excluding acquisitions and disposals increased 1.3% in Q2 2015, while including acquisitions and disposals turnover increased 1.9% to SEK9.272 billion. Sweden-only service revenues declined 1.0% in the quarter. In the group’s ‘Europe’ region, revenue in local currencies climbed 2.5%, and in reported currency jumped 10.7% to SEK10.845 billion in the three months to the end of March (compared to SEK9.797 billion in 1Q15). Europe division service revenues in local currencies fell 2.4%, however. In the group’s ‘Eurasia’ region, net sales in local currencies, excluding acquisitions and disposals, increased by just 0.1%, while in reported currency the division’s revenue increased by 13.9% to SEK5.740 billion (SEK5.041 billion). Eurasia service revenues decreased 2.0% in the three-month period.
The total number of subscriptions across the consolidated TeliaSonera group increased by 1.8 million in twelve months to reach 67.7 million at 31 March 2015 (including 60.6 million mobile); quarter-on-quarter the total subscriptions increased by 0.4 million.
The Swedish group added in a press release that the integration of recent acquisition Tele2 Norway with Norwegian division NetCom is ‘progressing at full steam and synergy execution is running ahead of plan, supporting profitability in the quarter.’ TeliaSonera raised its synergy target for the merger from SEK800 million to around SEK1 billion, of which approximately SEK700 million is expected to be achieved this year and the full run rate in 2016. It also noted that in June its Norwegian 4G LTE network population coverage surpassed 90%.