
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 ...
07/10/2026
Dalet, a leading technology and service provider for media-rich organizations, today announced the latest Long-Term Supported (LTS) release of Dalet Flex. Build...
06/09/2026
June 9 2026, 23:00 (PDT) Dolby and MagentaTV Bring Fans Closer to the FIFA Worl...
04/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
04/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
04/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
04/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
04/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
04/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
04/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
04/08/2026
Homecoming Artist Spotlight: Dreion The singer, songwriter, and producer talks about finding his village at Berklee ahead of his Homecoming performance on Sep...
04/08/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
03/08/2026
SVG's annual TranSPORT conference returns to New York City for a full day of sessions focused on the current state of live-sports-transmission technology. S...
03/08/2026
A five-time Emmy winner, this esports vet has built a production career on live storytelling, audience connection, and meeting viewers wherever they are
The sp...
03/08/2026
Live production in the cloud is a growing trend across the industry and Major Le...
03/08/2026
(L-R) Nyah B., Nala B., Shannon Elizabeth S., Celia K., Olive G., and Nikki B. attend the Q&A for Cookie Queens by Alysa Nahmias, an official selection of the...
03/08/2026
Recreates a 1977 Hohner Clavinet D6
After launching a software recreation of their own electric piano, Rhodes set about capturing another classic instrument...
03/08/2026
A modern solution for an old technique
Peak Tamer is a new standalone application that automatically applies gain automation to keep rogue peaks under cont...
03/08/2026
Plug-in gains object metadata automation export
Sound Particles have just released an update that adds a new Metadata Automation function to their their rec...
03/08/2026
SGL Carbon and X-energy today announced a binding agreement to double SGL's production capacity for medium-grain isotropic graphite ( NBG-18 ), a specialize...
03/08/2026
Glensound will launch the Greater Divine Supernal at PLASA Show 2026, extending its intelligent loudspeaker range for professional studio monitoring and live au...
03/08/2026
How Agua Tinta's Class Project Launched Her Songwriting Career Two years after graduating from Berklee, the songwriter has a Latin Grammy nomination, a So...
03/08/2026
Leiden University's new Campus Spui, located in the heart of The Hague, the diplomatic and administrative centre of the Netherlands, opened in February 2026...
03/08/2026
Bitfocus, the specialist in media control and monitoring, has received a further boost to its plans for continuing growth, particularly in Europe and North Amer...
03/08/2026
Jason Flemyng, Tessa Peake-Jones, Lee Ingleby and Georgia Tennant join the cast ...
03/08/2026
Building on the momentum of a landmark year for soccer in North America, Leagues...
02/08/2026
Classic EQ design goes virtual
Following on from the launch of the 500-series version of their BAX EQ unit, Dangerous Music have now teamed up with modellin...
02/08/2026
The Government's Missing Dimension
This article was originally published on the National Preparedness Commission website on 25 June 2026.
----------------...
01/08/2026
Latest free Vaults instrument released
The Crow Hill Company's Vaults collection offers a continually rotating selection of virtual instruments and samp...
01/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
01/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
01/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
01/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
01/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
01/08/2026
COW Jobs: Lead Generation Representative - Animation Services
Brie Clayton July 31, 2026
0 Comments
Lead Generation Representative - Animation Service...
01/08/2026
Emilie Lowe Shoots Award Winning Short Film Where Dead Things Grow with Blackmag...
01/08/2026
Early Registration Opens for the 2026 SMPTE Media Technology Summit
Brie Clayton July 31, 2026
0 Comments
Initial Program Announced Alongside New Medi...
31/07/2026
With an emphasis on local, the league is looking beyond the initial four teams t...
31/07/2026
The 2026 Sundance Institute Directors Lab fellows in Estes Park, Colorado (Photo by Gabe Rovick)
Dear Friends,
This has been an extraordinary year for our ar...
31/07/2026
Offers 360-degree sound placement in any DAW
Audiocube have just announced the launch of a new plug-in that embeds a complete 3D acoustic environment inside...
31/07/2026
10 new Chinese C-Pop voices introduced
While Sonarworks are best known to many for their room-correction software, their product range also includes an inno...
31/07/2026
Reimagines the vintage BBD sound character
PSPaudioware have now officially launched the new delay plug-in that they were previewing at GearExpo UK. Said to...
31/07/2026
The Savannah Bananas has built its reputation on refusing to play baseball by traditional rules, and the team's production arm Banana Ball TV (BTV) has draf...
31/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
31/07/2026
SMPTE, the home for media professionals, technologists and engineers, today opened early registration for the 2026 Media Technology Summit (MTS) and announced i...
31/07/2026
Clear-Com announced that Central Christian Church has transformed communication across its live production operations by implementing Clear-Com's LQ Seri...
31/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
31/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
31/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
31/07/2026
IBC has unveiled the finalists for the IBC2026 Innovation Awards, recognising collaborative projects from around the world that solve real-world challenges and ...