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TeliaSonera Q1 results lower, still sees stable FY
2014-04-23 10:12:00| Telecompaper Headlines
(Telecompaper) TeliaSonera reported a small drop in first-quarter results, as growth in mobile data and fibre broadband was unable to offset the continued erosion in voice and SMS revenues. Sales fell 2.5 percent from a year earlier to SEK 23.97 billion and were down 1.8 percent excluding forex and acquisition and disposal effects. Adjusted EBITDA fell 1.9 percent to SEK 8.35 billion, while the margin improved slightly, to 34.8 percent from 34.6 a year ago. Net profit was 4.0 percent lower at SEK 3.95 billion, but free cash flow improved 5.9 percent to SEK 5.56 billion, thanks to lower capital expenditure. The operator blamed the weaker results on the ongoing shift in consumer behaviour towards IP-based communications, as well as a reduction in low-margin equipment sales and regulatory cuts to termination rates. Based on the new organisational structure in place since 01 April, the company plans to focus on strengthening its position in existing markets, with M&A limited to consolidation opportunities. This will include continued investment in 4G and fibre in the Nordic markets and capitalising on data monetisation and expansion in adjacent industries in the Baltic markets. TeliaSonera maintained its outlook for stable organic revenues and adjusted EBITDA margin this year, but said there is some downside risk to revenue from reduced equipment sales. Capex is still projected at around 15 percent of revenue over the full year, after 10.8 percent in Q1.
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Category:Telecommunications
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