TeliaSonera Interim Report January - June 2015
17 July 2015
Executing on our strategic agenda SECOND QUARTER SUMMARY
Net sales increased 8.5 percent to SEK 27,115 million (24,985). Net sales in local currencies, excluding acquisitions and disposals, increased 1.9 percent. Service revenues in local currencies, excluding acquisitions and disposals, decreased 1.3 percent.
EBITDA, excluding non-recurring items decreased 4.0 percent in local currencies, excluding acquisitions and disposals. In reported currency, EBITDA, excluding non-recurring items, increased 4.0 percent to SEK 9,190 million (8,836). The EBITDA margin, excluding non-recurring items, decreased to 33.9 percent (35.4).
Operating income, excluding non-recurring items, decreased 7.6 percent to SEK 5,862 million (6,347).
Net income attributable to owners of the parent company decreased 8.1 percent to SEK 3,258 million (3,545) and earnings per share to SEK 0.75 (0.82).
Free cash flow increased to SEK 6,307 million (2,469), mainly due to Turkcell dividends of SEK 4,722 million, net of tax.
Group outlook for 2015 is unchanged.
FIRST HALF SUMMARY
Net sales increased 8.7 percent to SEK 53,156 million (48,911). Net sales in local currencies, excluding acquisitions and disposals, increased 1.5 percent. Service revenues in local currencies, excluding acquisitions and disposals, decreased 1.3 percent.
Net income attributable to owners of the parent company decreased 6.9 percent to SEK 6,973 million (7,490) and earnings per share to SEK 1.61 (1.73).
Free cash flow increased to SEK 9,160 million (5,025), mainly due to Turkcell dividends of SEK 4,722 million, net of tax.
Comments by Johan Dennelind,
President and CEO
TeliaSonera is on a journey of change to become a new generation telecoms company and we will achieve this by enhancing our core operations and explore opportunities in adjacent areas. In order to succeed, we need to drive innovation across the group to improve customer experience and deliver new relevant services. We will engage with partners to differentiate and speed up time to market. In the past quarter we have taken several new initiatives, particularly in the music field, highlighted by our new innovation partnership with Spotify.
In the second quarter, organic service revenues and EBITDA remained slightly under pressure, while reported numbers were supported by the acquisition of Tele2 in Norway and currency effects. Free cash flow improved significantly thanks to the dividend payment from Turkcell.
In Sweden, pressure on profitability eased in the quarter. We continue to invest in our networks to offer our customers superior connectivity wherever they are. Our mobile, broadband and TV operations all delivered positive service revenue growth, supported by higher ARPU and positive net customer intake, while fixed telephony continued to decline. Our recent price changes in the B2C segment are expected to support performance going forward, whereas competition in the B2B segment remains fierce. Mobile data consumption continued to increase, supported by a higher share of 4G-enabled handsets and two-thirds of data traffic is now handled by our 4G network. Our fiber roll-out gained further momentum backed by strong consumer demand. We expect to connect more than 50,000 single-family homes in 2015, an increase by around 50 percent compared to last year. At the end of the period we made changes in the leadership team to further boost our commercial agenda.
The integration of Tele2 Norway is progressing at full steam and synergy execution is running ahead of plan, supporting profitability in the quarter. We raise our synergy target from SEK 800 million to around SEK 1 billion, of which approximately SEK 700 million is expected to be achieved this year and the full run rate in 2016. We are also fulfilling our commitment to the Norwegian customers by investing significantly in our mobile network and a new milestone was reached in June when 4G-population coverage surpassed 90 percent.
In Eurasia, the quarter was challenging in several aspects. In late April, Nepal was hit by a devastating earthquake impacting the people of the country. Our local team has made a significant effort maintaining service functionality and securing reliable communications after this critical event. TeliaSonera has also via Ncell made major long term commitments to support the rebuild of Nepal. In Kazakhstan, price competition remains fierce and continues to impact service revenue growth and profitability. We work hard to strengthen competitiveness and recently launched new offerings to improve our customer proposition, but the challenging environment is likely to remain near term. Further, Swedish media reported on the privatization of Azercell, which took place seven years ago. TeliaSonera investigated this transaction already in 2013 and we have submitted our findings to Swedish authorities.
Looking ahead, we expect the earnings trend to improve somewhat in the second half of the year and reiterate our full year outlook, but we see increased risks related to performance in Eurasia. Group EBITDA, on a local organic basis and excluding synergies in Norway, is anticipated to remain around last year's level, while CAPEX is estimated to be approximately SEK 17 billion, excluding license and spectrum fees.
Stockholm, July 17, 2015
Johan Dennelind
President and CEO
Questions regarding the reports
TeliaSonera AB
www.teliasonera.com/investors
Tel. +46 8 504 550 00
TeliaSonera AB discloses the information provided herein pursuant to the Swedish Securities Markets Act and/or the Swedish Financial Instruments Trading Act. The information was submitted for publication at 07:00 CET on July 17, 2015.
Most recent headlines
09/11/2025
Dalet today announced a transformative leap forward for media operations: Agentic Artificial Intelligence (AI) that unifies the Dalet ecosystem under one natura...
16/10/2025
SVG Sit-Down: FUJIFILM Execs on GFX ETERNA 55 Camera, Importance of Shallow-Dept...
16/10/2025
Squash's Most Ambitious Broadcast Production To Be Deployed at Comcast Busin...
16/10/2025
Main Street Sports Group Inks Deal With Omaha Productions, Launches Original-Con...
16/10/2025
A Historic Precursor? FIFA, HBS, DAZN Offer an Inside Look at Production of FIFA...
16/10/2025
Prime Video Offers Sneak Peak at New NBA on Prime StudioThe massive 13,000-sq-ft, two-story studio features a LED regulation half court and hoopBy Jason Dachman...
16/10/2025
SVG Remote Production Forum Draws Record Crowd for Visit to PGA TOUR Studios, De...
16/10/2025
BitFire's Ben Grafchik on How Growing Cloud Workflows Are Impacting the Live...
16/10/2025
AI technology is advancing quickly, bringing both new creative possibilities and...
16/10/2025
In 2017, Imani Ellis launched CultureCon, a conference that's become a must-attend event for more than 10,000 diverse creatives and Black professionals to c...
16/10/2025
It might still be a little early to break out the tinsel and mistletoe, but Spotify's already queuing up some holiday magic. This year's Spotify Singles...
16/10/2025
Earlier this year, our in-house publishing imprint, Spotify Audiobooks, put out ...
16/10/2025
VAMPIRE has been integrated onto GM Defenses Infantry Squad Vehicle (ISV), providing a mobile solution to effectively and affordably counter small drone threat...
16/10/2025
The AgilePod mounted on the host aircraft....
16/10/2025
60% say infotainment systems are a critical purchasing or leasing consideration,...
16/10/2025
NEW YORK The Broadcasters Foundation of America has launched its 2025 Year-End Giving Campaign, which seeks to raise donations from tax-deductible personal and ...
16/10/2025
Roku has added several new features to its user interface and operating system meant to make it easier to discover and personalize content, the company said....
16/10/2025
NEW YORK CNN has announced that its All Access subscription tier will launch in the U.S. on Oct. 28, providing audiences with a centralized destination for CNN&...
16/10/2025
Student Spotlight: Alan Villanueva The graduate student and saxophonist, who performed on Natalia Lafourcades Latin Grammy-nominated Live at Carnegie Hall alb...
16/10/2025
The XR Sports Alliance (XRSA) has announced the third cohort of members. The new members include Maple Leafs Sports & Entertainment (MLSE), the Vegas Golden Kni...
16/10/2025
NEW YORK The Broadcasters Foundation of America has launched its 2025 Year-End Giving Campaign which seeks to raise donations from tax-deductible personal and c...
16/10/2025
NEW YORK Australia's Nine Network and the NHL today announced a media partnership that will bring the world's premier professional ice hockey league to ...
16/10/2025
Parks Associates has released new data showing that nearly half (45%) of U.S. internet homes watch free ad-supported streaming TV (FAST) services and 89% of U.S...
16/10/2025
TROY, Mich. -New data from J.D. Power's 2025 U.S. Residential Internet Service Provider Study shows that residential wireless internet providers are growing...
16/10/2025
TV's most charming detective drama * Shakespeare & Hathaway: Private Investi...
16/10/2025
Back to All News
Thailand's Legendary Outlaw Returns: Tee Yai: Born to be ...
16/10/2025
Back to All News
Christmas Is Just Around The Corner: Home For Christmas Season...
16/10/2025
Back to All News
Trist n Ulloa Stars in El crimen de Pazos, the New Netflix Ser...
16/10/2025
ABS Completes Redomiciliation to Dubai Development Authority as Part of Strategi...
16/10/2025
This Saturday October 18 Katja Mia will burst onto the radio airwaves for the first time as she joins 2FM. Katja will be standing in for Bl thnaid Treacy on Sat...
16/10/2025
This October, RT is delighted to support Wexford Festival Opera, Babor International Arts Festival for Children, Open House Dublin and 36 other arts and cultu...
16/10/2025
GeForce NOW is more than just a platform to stream fresh games every week - it offers celebrations for the gamers who make it epic, with member rewards to sweet...
15/10/2025
Across the world, early-career reporters are interrogating systems that shape daily life, from mortuaries and classrooms to the corridors of legal education and...
15/10/2025
St. Louis Blues Pay Tribute to Ozzy Osbourne in New Pregame Open VideoThe NHL franchise worked with production firms 2WEI and 4th Floor CreativeBy Mark J Burns,...
15/10/2025
Cobalt Digital, G3DVu, Proxima Vision, and Telos Alliance Renew Premier Sponsors...
15/10/2025
By Paige Bethmann
Before my grandmother passed away in 2019, I went to visit her in the hospital where she'd been for a few weeks. When I arrived, the nurs...
15/10/2025
Two years ago, Spotify set out to grow the entire publishing industry by making ...
15/10/2025
People turn to DJ for a listening experience that feels personal, dynamic, and j...
15/10/2025
Las personas recurren a DJ para vivir una experiencia de escucha personal, din m...
15/10/2025
Rock legend Bruce Springsteen and luminary actor Jeremy Allen White came togethe...
15/10/2025
At Spotify, we're all about supporting rising talent and helping them connec...
15/10/2025
New SBS Documentary Series THE CANCER KILLERS Premieres 4 November on SBS & SBS ...
15/10/2025
SBS celebrates the Festivals of Lights with bold, illuminating stories across th...
15/10/2025
One of humanity's most profound questions continues: Is there any place in our galaxy suitable for life beyond Earth? NASA intends to find out, with the hel...
15/10/2025
eds3_5_jq(document).ready(function($) { $(#eds_sliderM519).chameleonSlider_2_1({ content_source:......
15/10/2025
Scality, a global leader in cyber-resilient storage software for the AI era, today announced the advancement of its comprehensive AI ecosystem certification pro...
15/10/2025
The Hollywood Professional Association (HPA) today unveiled key highlights of the 2026 HPA Tech Retreat, scheduled for Feb. 15 19 at the Westin Rancho Mirage Go...
15/10/2025
At NAB Show New York 2025 (Stand 244), Interra Systems will showcase the future of media QC, monitoring, and captioning, highlighting its award-winning, AI- and...
15/10/2025
Grass Valley today announced that RMC BFM, part of the CMA-CGM Group and France's third-largest private media group, has chosen Grass Valley's productio...
TeliaSonera Interim Report January - June 2015 
