Sony Pixel Power calrec Sony

TeliaSonera Interim Report January - September 05

20/10/2015

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.
LINK: http://www.teliasonera.com/en/newsroom/press-releases/2015/10/teliason...
See more stories from teliasonera

Most recent headlines

05/01/2027

Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be demoed at CES 2026

Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...

07/10/2026

Dalet Flex LTS Delivers Smarter Media Operations from Ingest to Distribution

Dalet, a leading technology and service provider for media-rich organizations, today announced the latest Long-Term Supported (LTS) release of Dalet Flex. Build...

09/09/2026

IBC 2026: Sony Introduces SEL814G Fisheye Zoom G Lens

Sony Electronics has announced the SEL814G, the company's first fisheye zoom G Lens for full-frame Alpha E-mount cameras. The lens will be available in Octo...

09/09/2026

IBC 2026: Telestream Expands Practical AI Capabilities Across Vantage and UP Platform

Telestream has announced an expansion of its Practical AI capabilities across th...

09/09/2026

IBC 2026: Chyron and Haivision Announce Camera-to-Cloud Live Production Integration

Haivision and Chyron have announced a technology partnership integrating Haivisi...

09/09/2026

ManningCast Reveals 2026-27 Season Schedule with Heist Mini Movie

Omaha Productions has released ManningCast: Heist, a short film featuring Peyton and Eli Manning attempting to break into NFL Commissioner Roger Goodell's o...

09/09/2026

IBC 2026: Imagine Communications to Showcase XVR Updates

Imagine Communications will demonstrate the next evolution of XVR at IBC2026 (Stand 1.B73, RAI Amsterdam, September 11-14). XVR is Imagine's channel-in-a-b...

09/09/2026

IBC 2026: swXtch.io Launches AI Broadcast Orchestration Tool abbe

swXtch.io has announced abbe, an AI-based orchestration layer for live media workflows, making its world premiere at IBC2026 (Meeting Room 5.MR13, Hall 5, Septe...

09/09/2026

Inside the NFL Returns to X for Second Season, Marking 50th Anniversary

NFL Films has announced the second season of Inside the NFL on X as an X Original, premiering Wednesday, September 9. The series marks Inside the NFL's 50th...

09/09/2026

LiveU Expands AP Partnership with LU900Q Fleet and MAM Integration

LiveU has announced an expanded partnership with The Associated Press, deploying the largest fleet of LU900Q intelligent production units in the industry as par...

09/09/2026

Diversified to Consolidate New Jersey Operations into New Newark Facility

Diversified has announced plans to consolidate its four existing New Jersey locations into a new facility in Newark, expected to be fully operational by the end...

09/09/2026

IBC 2026: Wisycom Showcases MATF Antenna Matrix, PFL RFoF Box, and MPR60 Updates

Wisycom will exhibit new RF products at IBC2026 (Stand 8.D60, September 11-14), including the MATF Wideband Antenna Matrix, PFL Portable RF over Fiber Box, and ...

09/09/2026

IBC 2026: G&D and VuWall to Introduce vsNEO KVM-over-IP Platform

Guntermann & Drunck (G&D) and VuWall, both Panoptec companies, will introduce vsNEO at IBC2026 (Stand 8.B63, September 11, RAI Amsterdam). Pre-orders open in ea...

09/09/2026

Mo-Sys Completes Restructuring, Promotes Selin Kemal to Managing Director

Mo-Sys has completed a business restructuring and relocated to a new facility in Canada Water, London. As part of the reorganization, Selin Kemal has been promo...

09/09/2026

Aicox and TAG Video Systems Power Monitoring for Telefnicas TSAmediaHUB

Aicox has integrated TAG Video Systems' Core monitoring platform into Telef nica's TSAmediaHUB audiovisual contribution and distribution infrastructure....

09/09/2026

IBC 2026: Blackmagic Design Releases DaVinci Resolve 21.1

Blackmagic Design has released DaVinci Resolve 21.1, a free update available now through the Blackmagic Design website. The release adds new AI tools, workflow ...

09/09/2026

ESPN and Apple Music Collaborate on Monday Night Football Music Curation for 2026-27 Season

ESPN and Apple Music have announced a collaboration on music curation for Monday...

09/09/2026

Sacramento Production Services Deploys Wisycom RF System at Sutter Health Park

Sacramento Production Services has completed a wireless audio overhaul at Sutter Health Park, home of the Athletics during their three-year residency in Sacrame...

09/09/2026

NDI and NVIDIA Collaborate on AI-Powered Multilingual Content Workflows

NDI and NVIDIA have announced a collaboration to develop AI-powered workflows enabling broadcasters to create and distribute multilingual content from a single ...

09/09/2026

Sports Broadcasting Hall of Fame Announces the Class of 2026

Christopher Chip Adams, Troy Aikman, Jim Dove, Jim Eady, Bucky Gunts, Robert A. Iger, Charlie Jablonski, Robert Kraft, Tom Rinaldi, and Dick Stockton to be ho...

09/09/2026

NBC Sports Opens 21st SNF Season With Expanded Schedule, Traveling Studio Show, and Bulked Up Toolkit

ND2 returns as the primary unit, While FNIA gets SSQC and new flexible Rover...

09/09/2026

Celemony Tonalic gains additional Paul Kleber upright bass

New parts aimed at hip-hop and pop productions The latest update to Celemony's innovative virtual session musician expands the collection of built-in in...

09/09/2026

Sonarworks Autumn Sale

Save up to 40% until 21 September 2026 Sonarworks are currently running their Autumn Sale, with discounts of up to 40% currently available across their rang...

09/09/2026

Bjooks Beat Gems to begin shipping

Upcoming title officially launches in September 2026 Bjooks' celebrations for this year's 909 Day will be welcome news amongst drum machine lovers, ...

09/09/2026

NITV to bring First Nations netball to audiences nationwide

NITV to bring First Nations netball to audiences nationwide 9 September, 2026 Media releases Every match of the 2026 First Nations Tournament will be live ...

09/09/2026

NFVF CALL FOR PROPOSALS: YOUTH FILMMAKER PROJECT FACILITATING COMPANY 2026

The National Film and Video Foundation (NFVF) invites eligible Tier 1 and 2 South African production companies to submit proposals to serve as the Facilitating ...

09/09/2026

Nielsen launches CTV Ad spend data into its Italian Ad Intel product

Italy launch follows UK and Germany as Nielsen expands product across EMEA Milan, Italy, September 9, 2026 - Nielsen, a global leader in audience measurement, ...

09/09/2026

Gracenote Expands AI Product Roadmap with Sports MCP Server, Entertainment SLM and Agents

Planned solutions tackle accuracy, cost and latency barriers to deploying AI at ...

09/09/2026

Dalet Promotes Brian Doheny to CEO

Share Copy link Facebook X Linkedin Bluesky Email...

09/09/2026

Studio Technologies Expands StudioComm Monitoring With In...

Studio Technologies, a leading manufacturer of high-quality audio, video, and fiber-optic solutions, introduces its new Model 791 Control Console at IBC 2026 (N...

09/09/2026

Maxon Brings Exclusive Preview of Fall Innovations to IBC...

Maxon, maker of powerful, approachable software solutions for creators working in 2D and 3D design, motion graphics, visual effects and visualization, is headin...

09/09/2026

NUGEN Audio Leads the Dialog Intelligibility Conversation...

NUGEN Audio unveils DialogCheck v1.2, the latest evolution of its intelligent dialog intelligibility and compliance tool, at IBC 2026 (Pod P27). With a sharpene...

09/09/2026

Trusted Partner Network Launches Fix It or Risk It to Hel...

Trusted Partner Network Launches Fix It or Risk It to Help the Entertainment Industry Tackle Everyday Security Risks Industry-Wide Campaign Launches at IBC2...

09/09/2026

FCC to Vote on Opening Up Spectrum for Satellite, IoT

Share Copy link Facebook X Linkedin Bluesky Email...

09/09/2026

NDI, NVIDIA Collaborate On Real-Time AI Multilingual Content

Share Copy link Facebook X Linkedin Bluesky Email...

09/09/2026

83 percent of UK advertisers are using AI but speed and n...

AI has moved firmly beyond experimentation in UK advertising, with more than eight in ten marketers (83%) now actively using or piloting AI in production, accor...

09/09/2026

Pixitmedia by DataCore to showcase cloud and connected pr...

IBC2026 - Stand 7.D22 At IBC2026, Pixitmedia by DataCore will showcase its latest capabilities designed to simplify distributed production, accelerate workflow...

09/09/2026

Net Insight Showcases Open Live Media for Controlled Live...

Stockholm, Sweden September 9th, 2026 At IBC2026, on booth 1.B47, Net Insight will showcase Open Live Media, its architecture for delivering resilient live ...

09/09/2026

Net Insight and DMC expand repeatable remote production m...

Net Insight today announced that DMC Production Norway is continuing the use of its Open Live Media technology for premium European football, deploying Nimbra 5...

09/09/2026

Amagi to Showcase Four AI-Native Innovations Built to Pow...

Amagi, the media industry cloud platform for unified broadcast, streaming, and monetization, will showcase four new AI-native capabilities at IBC2026, Hall 5, S...

09/09/2026

Limecraft Brings Connected Automated and Intelligent Medi...

Limecraft today announces version 2026.6 of its AI-powered production platform, extending capabilities for connected media operations. An AI-assisted approach t...

09/09/2026

Telestream Advances Practical AI from Content Understandi...

Telestream, a global leader in media workflow technologies, today announced the next evolution of its Practical AI strategy, evolving its comprehensive portfoli...

09/09/2026

Dalet Appoints Brian Doheny as Chief Executive Officer

Dalet, a leading technology and service provider for media-rich organizations, today announced the appointment of Brian Doheny as Chief Executive Officer (CEO)....

09/09/2026

LiveU Offers Starlink for News and Sports Broadcast as Cl...

LiveU is now a Clarus Integrated Reseller, bringing Starlink's fast, reliable broadband directly into LiveU's cellular bonding EcoSystem through a singl...

09/09/2026

Study: New Streaming TV Series Orders Plumet

Share Copy link Facebook X Linkedin Bluesky Email...

09/09/2026

G&D, VuWall To Introduce vsNEO KVM Platform At IBC2026

Share Copy link Facebook X Linkedin Bluesky Email...

09/09/2026

FCC May Ramp Up Regulation of How Broadcasters Cover Polls

Share Copy link Facebook X Linkedin Bluesky Email...

09/09/2026

Avid to Demo New Avid Content Core Features at IBC2026

Share Copy link Facebook X Linkedin Bluesky Email...

09/09/2026

Wisycom Showcases Latest Innovations at IBC 2026

Wisycom is showcasing the latest additions to its ecosystem of professional RF technologies at IBC 2026 (Stand 8.D60). This includes its new MATF Wideband Anten...

09/09/2026

VisualOn and Cires21 Cut Delivery Bitrate Up to 76 Percen...

AMSTERDAM, IBC2026 VisualOn, Inc. and Cires21 today released an updated joint whitepaper at IBC 2026 demonstrating measurable, high-impact improvements in visu...