Income from associated companies and joint ventures
The net effect on income from holdings in associated companies and joint ventures was as follows.
|
|
January–December | |
|---|---|---|
| SEK in millions | 2008 | 2007 |
| Share in net income for the year | 9,257 | 7,677 |
| Amortization of fair value adjustments | -146 | -54 |
| Impairment losses on goodwill, fair value adjustments, etc. | – | -0 |
| Net capital gains | -15 | 74 |
| Net effect on income | 9,096 | 7,697 |
Income is broken down by reportable segment in Note 6 “Segment Information.” Large individual stakes (including capital gains/losses and intermediate holding companies, when applicable) impacted earnings as follows.
|
|
January–December | |
|---|---|---|
| SEK in millions | 2008 | 2007 |
| Svenska UMTS-nät AB, Sweden (joint venture) |
-120 | -156 |
| SIA Lattelecom, Latvia | 151 | 225 |
| OAO MegaFon, Russia | 5,070 | 4,181 |
| Turkcell Iletisim Hizmetleri A.S., Turkey | 3,991 | 2,725 |
| Telefos AB, Sweden | 1 | 640 |
| Other holdings | 3 | 82 |
| Net effect on income | 9,096 | 7,697 |
Turkcell's financials are included in TeliaSonera's reporting with a one-quarter lag. In 2007, Telefos divested its remaining subsidiary Eltel Group Oy.
Investments in associated companies and joint ventures
The total carrying value was distributed and changed as follows.
|
|
December 31, | |
|---|---|---|
| SEK in millions | 2008 | 2007 |
| Goodwill and similar assets on consolidation | 7,925 | 8,655 |
| Share of equity | 31,618 | 24,410 |
| Carrying value | 39,543 | 33,065 |
| Carrying value, opening balance | 33,065 | 25,536 |
| Share of net income for the year | 9,257 | 7,677 |
| Amortization and write-downs of fair value adjustments | -146 | -54 |
| Dividends received | -1,410 | -2,684 |
| Acquisitions and operations acquired | 11 | 389 |
| Reclassifications | 248 | -314 |
| Exchange rate differences | -1,482 | 2,515 |
| Carrying value, closing balance | 39,543 | 33,065 |
The carrying value is broken down by reportable segment in Note 6 “Segment Information” and by company in Note 35 “Specification of Shareholdings and Participations.” The market value of the Group's holding in the publicly quoted Turkcell was SEK 36,687 million and SEK 57,871 million as of December 31, 2008 and 2007, respectively.
Summarized information on the associated companies' and joint ventures' aggregate (100 percent) balance sheets and income statements was as follows.
|
|
December 31, or January–December |
|
|---|---|---|
| SEK in millions | 2008 | 2007 |
| Non-current assets | 135,433 | 125,270 |
| Current assets | 56,096 | 39,976 |
| Provisions and long-term liabilities | 20,348 | 17,691 |
| Current liabilities | 23,691 | 23,508 |
| Net sales | 96,302 | 85,195 |
| Gross profit | 66,450 | 56,158 |
| Net income | 30,992 | 24,638 |