TeliaSonera on Thursday said it is reviewing its future presence in the Spanish market.
The decision to review its future presence in the Spain telecom market is due to challenging conditions.
Recently, TeliaSonera announced its plans to buy Tele2 Norway.
TeliaSonera said its sales in Spain deceased 19.3 percent to SEK 1,805 million in the second quarter of 2014 from SEK 2,237 million in the same quarter of 2013.
“In Spain, margin recovered in the second quarter, but the business remains sub-scale with a market share around 7 percent. Competition is fierce, forced by a strong convergence trend that puts pressure on our mobile-only business. Consequently, we are reviewing our future presence in the Spanish market,” said Johan Dennelind, president and CEO at TeliaSonera.
In Spain, sales growth continued to be impacted by high competition and lower equipment sales and interconnect revenues, while profitability recovered due to reduced subscriber acquisition costs.
TeliaSonera Spain posted 10.9 percent dip in mobile service revenues, mainly due to lower interconnect revenues and billed ARPU erosion. Equipment revenues almost halved to SEK 385 million compared to the corresponding quarter last year.
The EBITDA margin improved to 11.0 percent (8.2) due to reduced low margin handset sales as well as lower subsidies and subscriber acquisition costs.
TeliaSonera Span said the number of added subscriptions remained positive, but slowed down on a sequential basis.
