Telecom Lead Europe: TeliaSonera is likely to lower Capex (capital expenditures) in 2013 from SEK 15.685 billion in 2012.
TeliaSonera — in its annual report for 2012 — said the Capex-to-sales ratio in 2013 is expected to be approximately 14 percent, excluding license and spectrum fees against 14.6 percent in 2012.
Sharing outlook for 2013 — in the annual report — the mobile giant said it is expected to report flat growth in net sales in local currencies and excluding acquisitions. Currency fluctuations may have a material impact on reported figures in Swedish krona.
TeliaSonera’s EBITDA margin, excluding non-recurring items, is expected to increase slightly compared to last year’s 34.4 percent.
The telecom operator has decreased its Capex to SEK 15.685 billion in 2012 from SEK 17.384 billion in 2011. The Capex-to-sales ratio decreased to 15 percent from 16.6.
Capex in 2012 included continued investments in network capacity, coverage and modernization, and increased investments in fiber roll-out, while investments in telecom and frequency licenses declined significantly. Capex, excluding license and spectrum fees, amounted to SEK 15.333 billion (14,701) and the Capex-to-sales ratio was 14.6 percent (14.0).
TeliaSonera, as announced in the third quarter of 2012, is taking efficiency measures to eliminate 2,000 jobs to lower the cost base by SEK 2 billion net over the coming two years.
In 2013, the addressable cost base, excluding mobility services Spain, is expected to be reduced to SEK 26.3 billion in local currencies and excluding acquisitions. In 2014, it will be lowered to SEK 25.3 billion.
During 2013, 1,800 employees in the Nordics and Baltics will be effected (total number of employees 2012: 27,838 of which 22,537 in the Nordics and Baltics). These efficiency measures will be completed by early 2014 at the latest. Total cost for these reductions in 2013 is estimated to SEK 1.7 billion. At the same time, TeliaSonera sees a need to recruit new competence.
