Telecom Lead Europe: TeliaSonera has reported 1.1 percent
increase in net sales to SEK 26,294 million in the first quarter of 2012 from
SEK 26,003 in the same period last year.
EBITDA, excluding non-recurring items, fell 2.0 percent
to SEK 9,006 million (9,186) and the margin decreased to 34.3 percent (35.3).
Operating income, excluding non-recurring items,
decreased 6.1 percent to SEK 6,561 million (6,985).
Free cash flow increased to SEK 14,788 million (1,440).
During the quarter the number of subscriptions increased
by 1.4 million in the consolidated companies and by 0.8 million in the associated
companies. The total number of subscriptions was 174.6 million.
Growth in net sales in local currencies and excluding
acquisitions is expected to be within the range of 0-1 percent. EBITDA margin,
excluding non-recurring items, is expected to be around 35 percent.
In first half, TeliaSoner’a net sales increased 2.3
percent to SEK 51,987 million (50,838).
Revenues in local currencies in the second quarter were
largely unchanged compared to the same quarter a year ago. While trends within
Broadband Services and Eurasia have been broadly stable, Mobility Services
experienced a slower growth in service revenues and equipment sales. Mobility
Sweden delivered growth for the 22nd consecutive quarter albeit at a lower
rate, while growth in Yoigo in Spain slowed down despite further market share
gains,” said Lars Nyberg, president and CEO, TeliaSonera.
In broadband services, we see a continued strong demand
for our fiber offerings, as four out of ten households in Sweden being offered
our services sign up for them. In the first half of 2012, we have improved our
internal processes and hired additional resources and are now ready to expand
our fiber offerings to new customers,” Nyberg added.
Eurasia continues to deliver double-digit growth.
Given the rapid growth in subscriptions in countries such
as Nepal, the telecom oprator has reduced its dependency on one single market.
Kcell in Kazakhstan today represents 30 percent of our
subscription base in the region, down from 50 percent five years ago.
TeliaSonera said it will be a leader in creating offers
based on data that are attractive to customers, while providing the revenues
needed for future, mainly data driven, investments. Our initiative to drive
down international data roaming prices, which recently expanded to the US and
Croatia, and our premium partnership with service providers such as Spotify,
now available throughout the Nordics, are good examples of the future
direction.
In light of the industry transition described above,
operators including TeliaSonera, need to change their business models, address
their structural cost base and review their way of working to secure future
profitability.