Annual Report 2007 - Introduction The Year in Brief
Highlights of the Year
- Net sales increased 5.8 percent to SEK 96,344 million (91,060).
- Strong growth - 114.9 million subscriptions:
- 5.8 million new subscriptions in the majority-owned Nordic, Baltic and Eurasian operations.
- 12.9 million new subscriptions in the associated companies MegaFon and Turkcell. - Operating income, excluding non-recurring items, totaled SEK 27,478 million (26,751), with the largest increase, around 28 percent, in Eurasia, including Russia and Turkey.
- EBITDA margin, excluding non-recurring items, was 32.2 percent (35.4).
- Free cash flow was SEK 13,004 million (16,596).
- Net income attributable to shareholders of the parent company increased to SEK 17,674 million (16,987) and earnings per share to SEK 3.94 (3.78).
- Total proposed dividend of SEK 17,962 million (28,290) or SEK 4.00 per share (6.30) comprising:
- Ordinary dividend of SEK 8,083 million (8,083) or SEK 1.80 per share (1.80).
- Extraordinary dividend of SEK 9,879 million (20,207) or SEK 2.20 per share (4.50).
| Financial Highlights 1) | 2007 | 2006 | 2005 |
|---|---|---|---|
| Net sales | 96,344 | 91,060 | 87,661 |
| EBITDA excl. non-recurring items | 31,021 | 32,266 | 29,411 |
| Operating income | 26,155 | 25,489 | 17,549 |
| Operating income excl. non-recurring items | 27,478 | 26,751 | 20,107 |
| Net income | 20,298 | 19,283 | 13,694 |
| of which attributable to shareholders of the parent company | 17,674 | 16,987 | 11,697 |
| Earnings per share (SEK) | 3.94 | 3.78 | 2.56 |
| 1) SEK in millions, except per share data | |||
Milestones 2007
Lars Nyberg appointed
new President and CEO
of TeliaSonera
Lars Nyberg was appointed President and CEO on July 27, 2007, and assumed his position on September 3. Mr. Nyberg is also Chairman of DataCard Inc. and board member of Autoliv Inc. Between 1995 and 2003 he was Chairman and CEO of NCR Corp, where he continued as Chairman until 2005. Previously, Mr. Nyberg held several managerial positions in Philips, and was a member of Philips Group Management Committee.
21.5 percent growth
and new markets
in Eurasia
Our dedication to create value in Eurasia was rewarded by yet another year of stellar performance by our Eurasian operations. In 2007 we entered new growth markets and successfully integrated operators in Uzbekistan and Tajikistan.
770,000 TV subscriptions in the Nordic and Baltic countries
We see television as an anchor for the new services that we will bring to households in the future. In 2007, our increased efforts to handle the migration from traditional fixed voice services was evidenced by a rise to 2,326,000 broadband subscriptions and 770,000 TV subscriptions in the Nordic and Baltic countries, of which 304,000 IPTV subscriptions in Sweden.
Skanova Access ensures
market requirement
for equal access
Within business area Broadband Services we followed our ambition to strengthen our focus on IP-based services and initiated a split between traditional and new services. In addition, we decided to form an infrastructure subsidiary in Sweden, called TeliaSonera Skanova Access, to ensure market requirement for transparency and equal access.
Dividend 2007
For 2007, the Board of Directors proposes to the Annual General Meeting a total dividend of SEK 4.00 per share, including ordinary dividend of SEK 1.80 per share and extraordinary dividend of SEK 2.20 per share.