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TeliaSonera lowers FY outlook on weakness in Kazakhstan
2015-10-20 08:48:00| Telecompaper Headlines
(Telecompaper) TeliaSonera lowered its outlook for full-year organic EBITDA after reporting a slightly lower result for the third quarter. The company previously expected stable organic revenue and EBITDA this year, but now sees EBITDA coming in slightly lower. In the third quarter, organic sales increased 2.4 percent, while EBITDA excluding one-time items, currency effects and acquisitions and disposals declined 0.9 percent. The operator blamed the decline on its operations in Eurasia, and in particular Kazakhstan where it's suffering from intense price competition. This was offset by positive organic EBITDA growth in its home market Sweden and the rest of Europe. On a reported basis, net sales increased 6.3 percent to SEK 27.029 billion, and adjusted EBITDA rose 3.1 percent to SEK 9.730 billion, leading to a lower margin of 36.0 percent compared to 37.1 a year ago. Net profit improved 12.7 percent to SEK 4.589 billion, while free cash flow fell to SEK 4.699 billion from SEK 6.387 billion, mainly due to delayed dividends from Megafon. TeliaSonera said it expects continued improvement in the region Sweden and Europe in Q4, but Eurasia and Kazakhstan will remain difficult. The company maintained planned capital expenditure this year at SEK 17, excluding licence and spectrum fees.
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Category:Telecommunications