TeliaSonera Interim Report January - September 2015
20 October 2015
Solid core business
THIRD QUARTER SUMMARY
Net sales increased 6.3 percent to SEK 27,029 million (25,417). Net sales in local currencies, excluding acquisitions and disposals, increased 2.4 percent. Service revenues in local currencies, excluding acquisitions and disposals, decreased 0.5 percent.
EBITDA, excluding non-recurring items decreased 0.9 percent in local currencies, excluding acquisitions and disposals. In reported currency, EBITDA, excluding non-recurring items, increased 3.1 percent to SEK 9,730 million (9,439). The EBITDA margin, excluding non-recurring items, decreased to 36.0 percent (37.1).
Operating income, excluding non-recurring items, increased 3.0 percent to SEK 7,486 million (7,266).
Net income attributable to owners of the parent company increased 12.7 percent to SEK 4,589 million (4,073) and earnings per share to SEK 1.06 (0.94).
Free cash flow decreased to SEK 4,699 million (6,387), mainly explained by lower dividend from MegaFon as the company intends to pay out dividends in two tranches in 2015.
Group outlook for 2015 is changed EBITDA excluding non-recurring items, in local currencies, excluding acquisitions and disposals, is expected to be slightly below the level in 2014.
NINE-MONTH SUMMARY
Net sales increased 7.9 percent to SEK 80,186 million (74,328). Net sales in local currencies, excluding acquisitions and disposals, increased 1.8 percent. Service revenues in local currencies, excluding acquisitions and disposals, decreased 1.0 percent.
Net income attributable to owners of the parent company was unchanged at SEK 11,561 million (11,563) and earnings per share at SEK 2.67 (2.67).
Free cash flow increased to SEK 13,859 million (11,412), mainly due to dividends from Turkcell.
Comments by Johan Dennelind,
President and CEO
In the third quarter, there was an encouraging performance in our core operations in Sweden and Europe with both regions turning to positive organic EBITDA growth. Eurasia remained impacted by macro-economic pressure and high competition in parts of the footprint, particularly affecting our operations in Kazakhstan while performance in Nepal remained strong.
In Sweden, we continue to execute on our superior network strategy and expect to invest more than SEK 6 billion this year, to a large extent related to fiber and 4G. The positive effects are gradually becoming visible and organic service revenue growth improved to 1 percent, supported by higher ARPU in mobile, broadband and TV together with high number of fiber deliveries. Growth in the consumer segment remained healthy and pressure in enterprise eased slightly in the quarter. As a result of higher service revenues and good cost control, the EBITDA margin increased by almost 1 percentage point compared to the corresponding period last year.
The integration of the acquired Tele2 business in Norway is well on track. Overall performance was solid with good organic growth and continued support from synergies. On a further positive note, our operations in all three Baltic countries delivered higher profits in the quarter. We continue to develop our customer propositions in the region, which was recently highlighted by our announced business combination in Lithuania between Teo and Omnitel.
In early September, we announced the withdrawal of the proposed merger with Telenor in Denmark as the parties were not able to agree with the European Commission on the merger conditions. It is still our view that returns remain insufficient and we will continue to seek ways to improve profitability in our Danish operation.
The overall performance in Eurasia was impacted by increased margin pressure in Kazakhstan. Price competition is fierce in the country and profitability was also affected by increased interconnect costs due to higher off-net volumes following recent product launches. We have undertaken actions to mitigate the impact but the expectation is that the trends will continue short term. Our business in Nepal managed the impact of the earthquake earlier this year in an impressive way and maintained solid performance in the quarter.
We continue to shape TeliaSonera for the future and further outlined our priorities by the recent decision to increase focus on our operations in Europe and Sweden and reduce the presence in Eurasia. In the past two years, we have put a lot of effort into improving the Eurasian operations, particularly from a corporate governance and sustainability perspective. In our view, these units are now in better shape and can be further developed by new owners. The process to leave the region has already commenced and we will continue to make updates as we progress.
Looking ahead, we expect both Region Sweden and Europe to show further progress in the fourth quarter, but that the challenges will remain in Eurasia, accentuated by Kazakhstan. As a result, we fine-tune our full-year outlook and expect EBITDA, on a local organic basis to be slightly below last year's level, and foresee CAPEX at around SEK 17 billion. The outlook excludes the synergy expectations for Norway which we raised in the previous quarter to SEK 700 million for 2015 with a run rate of SEK 1 billion when fully implemented in 2016 .
Stockholm, October 20, 2015
Johan Dennelind
President and CEO
Questions regarding the reports
TeliaSonera ABwww.teliasonera.com/investors
Tel. +46 8 504 550 00
www.teliasonera.com
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 October 20, 2015.
Most recent headlines
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
04/08/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
04/07/2026
April 7 2026, 19:00 (PDT) Detective Conan: Fallen Angel of the Highway Opens in...
01/06/2026
January 6 2026, 05:30 (PST) Dolby Sets the New Standard for Premium Entertainment at CES 2026
Throughout the week, Dolby brings to life the latest innovatio...
12/05/2026
Beyond the Hype: A Strategic Post-Hoc Analysis of NAB 2026 If NAB Show 2026 had an underlying theme, it was a quiet, industry-wide pivot from the high-energy sp...
12/05/2026
Guntermann and Drunck (G&D), a Panoptec Technologies Group company, and CT Square, led by Chandresh Shah, have announced a joint venture to distribute G&D and V...
12/05/2026
With 30 days until the start of the FIFA World Cup 2026, Telemundo, the exclusive Spanish-language home of the tournament in the United States, has announced th...
12/05/2026
The NHL has announced the return of Stanley Pup for its third consecutive year, a 90-minute special featuring adoptable rescue dogs competing on a miniature rin...
12/05/2026
NBCUniversal presented its 2026 Upfront to advertisers at Radio City Music Hall, detailing upcoming programming across NBC, Peacock, Bravo, and Versant properti...
12/05/2026
FOX Sports has announced funding for the Fandom and Social Connection Initiative at Harvard Kennedy School's Shorenstein Center on Media, Politics, and Publ...
12/05/2026
TNDV and Live Media, both divisions of Live Media Group, supported live broadcast coverage around NCAA Final Four weekend in Indianapolis, including the March M...
12/05/2026
The European Football Alliance (EFA) has announced a content distribution agreement with Fubo Sports Network, the free ad-supported streaming TV (FAST) channel ...
12/05/2026
For the first time, Spanish-speaking fans in the U.S. will have two separate tel...
12/05/2026
CP Communications led a comprehensive spectrum management initiative on behalf of Churchill Downs during Kentucky Derby week, coordinating RF assets across the ...
12/05/2026
LiveU has announced a strategic partnership with DRONERESPONDERS, a 501(c)3 non-...
12/05/2026
Open Broadcast Systems has announced that BMC TV, a specialist in IP transport of broadcast content, has selected the Open Broadcast Systems 5G Flyaway solution...
12/05/2026
NEP Europe, part of NEP Group, has announced it will deliver broadcast solutions...
12/05/2026
Grass Valley has announced continued collaboration with Ravensbourne University ...
12/05/2026
Stats Perform has announced the launch of Opta Pulse, an AI-assisted video creation and distribution platform for leagues, rights holders, and broadcasters. The...
12/05/2026
FOX Sports has announced a collaboration with Sesame Workshop to integrate Sesame Street characters into FOX Sports' FIFA World Cup 2026 programming. Conten...
12/05/2026
To date, NHL Productions has produced 19 broadcasts with commentary in American Sign Language
NHL in ASL (American Sign Language) may be just one show, but the...
12/05/2026
Google's Brian Albert: creators, athletes, highlights, nostalgia, second-scr...
12/05/2026
A still from Past Lives by Celine Song, an official selection of the Premieres program at the 2023 Sundance Film Festival. (Courtesy of Sundance Institute | p...
12/05/2026
Spotify is where fans and artists come together, turning discovery into somethin...
12/05/2026
Features patented Marco-MMC clocking technology
Black Lion Audio's latest release combines the company's expertise in clocking with their renowned p...
12/05/2026
New Track Panel, sequencer upgrades & more
Following their recent public beta release, Reason Studios have announced the full release of Reason 14. With the...
12/05/2026
One month to go! SBS reveals expansive FIFA World Cup 2026 lineup beyond the pi...
12/05/2026
Rohde & Schwarz presents its advanced solutions for power electronics testing at...
12/05/2026
aconnic AG (ISIN: DE000A0LBKW6), Munich, has developed a modified fund raising p...
12/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
12/05/2026
Tyrell Corporation, specialists in high-end live sports and entertainment broadcasts, was tasked with delivering compelling broadcast coverage of premier equest...
12/05/2026
Registration is now open for IBC2026 as the global media, entertainment and technology community prepares to converge on the RAI Amsterdam from 11 14 September ...
12/05/2026
Ross Video, a global leader in live video production technology, will present its latest innovations and integrated production workflows at BroadcastAsia 2026, ...
12/05/2026
500 selected leaders from around the world across start-ups, corporates, and venture capital. Over 50bn in assets under management among attending investors, a...
12/05/2026
CVP, one of Europe's leading suppliers of professional video and broadcast solutions, has appointed Randy Koeman as Sales Manager, Netherlands, marking anot...
12/05/2026
Taiwan Television has expanded its HD content ingest workflow capabilities by investing in the PlayBox Neo Suite - a leading multi-channel multi-server UHD/HD/S...
12/05/2026
Jigsaw24 is strengthening its media team with the appointment of Tom Laker as Client Director and Ashish Chauhan as Project Manager. These strategic hires bring...
12/05/2026
Broadcast playout leader showcases hybrid IP infrastructure and workflow automation with Videoland deployment as regional benchmark...
12/05/2026
dzjinius, the all-in-one production management platform for the media and entertainment industry, will showcase its centralised approach to production workflows...
12/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
12/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
12/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
12/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
12/05/2026
NUGEN Audio will debut Version 1.1 of DialogCheck, its intelligent dialog intelligibility and compliance tool, at the 2026 Media Production & Technology Show (S...
12/05/2026
The reactive visuals can adapt to any stage or screen setup and comprise 50 layers of Notch content
Today, Disguise announced that its high performance GX 3 m...
12/05/2026
Snapgrid , Snapbag & Airglow Expand Creative Control for the ARRI Modular LED BarFollowing the launch of the ARRI Omnibar, DoPchoice introduces a dedicated li...
12/05/2026
May 12th, 2026 Press Materials Available Here
TRIBECA FESTIVAL UNVEILS 2026 GAMES PROGRAM
Tribeca Celebrates Its 25th Anniversary With World Premieres and Pl...
12/05/2026
May 12th, 2026 Press Materials Available Here
MADONNA BRINGS THE WORLD PREMIERE OF CONFESSIONS II TO 2026 TRIBECA FESTIVAL
The Global Icon Will Unveil a Cine...
12/05/2026
Customer demand for data continues to grow in the first quarter of 2026 at Magya...
TeliaSonera Interim Report January - September 2015 
