The parent company TeliaSonera AB, which is domiciled in Stockholm, comprises the Group's Swedish activities in development and operation of fixed networks and basic production of network services. The parent company also includes Group executive management functions, certain Group common operations and the Group's internal banking operations. As of January 1, 2008, certain operations were transferred to the new, wholly owned telecom network infrastructure subsidiary, TeliaSonera Skanova Access AB.

The parent company's financial statements are prepared and presented in accordance with the Swedish Annual Accounts Act, other Swedish legislation, and standard RFR 2.1 "Accounting for Legal Entities" and other statements issued by the Swedish Financial Reporting Board.

Net sales for the year declined to SEK 17,809 million (SEK 19,705 million in 2006), due to migration to mobile services and lower priced IP-based services. SEK 12,811 million (14,424) was billed to subsidiaries. Income after financial items increased strongly as a result of dividend payments from subsidiaries and was SEK 23,845 million (7,631). Net income was SEK 20,001 million (3,228).

The balance sheet total increased to SEK 182,436 million (171,672). Shareholders' equity decreased to SEK 63,013 million (71,262) and retained earnings to SEK 44,848 million (52,595) as the strong result did not fully compensate for the ordinary and extra dividend payments of SEK 28,290 million in 2007.

Free cash flow increased to SEK 20,668 million (6,221), and cash flow before financing activities was SEK 7,916 million (-6,927). Net debt increased to SEK 88,210 million (64,968). Cash and cash equivalents totaled SEK 2,790 million (7,593) at year-end.

The equity/assets ratio (including the equity component of untaxed reserves and adjusted for proposed dividends) was 32.6 percent (32.4).

Total investments for the year amounted to SEK 13,269 million (17,332), including SEK 2,705 million (2,382) in property, plant and equipment, primarily for the fixed network. Other investments totaled SEK 10,564 million (14,950), of which SEK 2,024 million attributable to the acquisitions of Cygate and debitel Danmark, and SEK 8,015 million to transfers of shareholdings within the Group.

As a result of the organizational restructuring implemented in 2007, the number of employees at December 31, 2007 net increased to 2,567 from 2,408 at year-end 2006.