The Group's operations are managed and reported by business area (BA) as follows.
- Business area Mobility Services provides personal mobility services to the consumer and enterprise mass markets. Products and services include mobile voice and data, mobile content, WLAN Hotspots, mobile over broadband, mobile/PC convergence and Wireless Office. The business area comprises mobile operations in Sweden, Finland, Norway, Denmark, Lithuania, Latvia, Estonia and Spain.
- Business area Broadband Services provides mass-market services for connecting homes and offices. Products and services include broadband over copper, fiber and cable, IPTV, voice over internet, home communications services, IP-VPN/Business internet, leased lines and traditional telephony. The business area operates the group common core network, including the data network of the international carrier business, and comprises operations in Sweden, Finland, Norway, Denmark, Lithuania, Latvia (49 percent), Estonia and international carrier operations.
- Business area Eurasia comprises mobile operations in Kazakhstan, Azerbaijan, Uzbekistan, Tajikistan, Georgia, Moldova, Nepal and Cambodia. The business area is also responsible for developing TeliaSonera's shareholding in the mobile operators MegaFon (44 percent) in Russia and Turkcell (37 percent) in Turkey.
- Other operations comprise Other Business Services, TeliaSonera Holding and Corporate functions. Other Business Services is responsible for sales and production of managed-services solutions to business customers. TeliaSonera Holding is responsible for the Group's non-core/non-strategic operations. Corporate functions comprise the Corporate Head Office and certain shared service functions on Group level, BA level and country level.
Segment consolidation is based on the same accounting principles as for the Group as a whole, except for inter-segment finance leases which are treated as operating leases. Inter-segment transactions are based on commercial terms. Besides Net sales and Operating income, principal segment control and reporting concepts are EBITDA excluding non-recurring items and Operating segment capital, respectively (see “Definitions”). Comparative period figures for 2007 have been restated to reflect the organizational restructuring effective January 1, 2008 (see “Report of the Directors,” section “Review of the Business Areas”).
|
|
January–December 2008 or December 31, 2008 | |||||
|---|---|---|---|---|---|---|
| SEK in millions | Mobility Services | Broadband Services | Eurasia | Other operations | Eliminations | Group |
| Net sales | 48,673 | 44,943 | 13,204 | 2,538 | -5,773 | 103,585 |
| External net sales | 46,259 | 42,015 | 13,196 | 2,115 | – | 103,585 |
| EBITDA excluding non-recurring items | 14,399 | 11,922 | 6,553 | 116 | -36 | 32,954 |
| Non-recurring items | -397 | -1,194 | – | 295 | – | -1,296 |
| Amortization, depreciation and impairment losses | -4,354 | -5,483 | -1,883 | -422 | 36 | -12,106 |
| Income from associated companies and joint ventures | -122 | 151 | 9,061 | 6 | – | 9,096 |
| Operating income/loss | 9,526 | 5,396 | 13,731 | -5 | 0 | 28,648 |
| Financial items, net |
|
|
|
|
|
-2,237 |
| Income taxes |
|
|
|
|
|
-4,969 |
| Net income |
|
|
|
|
|
21,442 |
| Investments in associated companies and joint ventures | 96 | 974 | 38,100 | 373 | – | 39,543 |
| Other operating segment assets | 93,159 | 57,996 | 34,088 | 6,309 | -1,375 | 190,177 |
| Unallocated operating assets |
|
|
|
|
|
13,397 |
| Other unallocated assets |
|
|
|
|
|
21,169 |
| Total assets |
|
|
|
|
|
264,286 |
| Operating segment liabilities | 12,795 | 14,529 | 13,141 | 5,434 | -1,396 | 44,503 |
| Unallocated operating liabilities |
|
|
|
|
|
20,597 |
| Other unallocated liabilities |
|
|
|
|
|
65,821 |
| Adjusted equity |
|
|
|
|
|
133,365 |
| Total equity and liabilities |
|
|
|
|
|
264,286 |
| Investments | 4,771 | 6,435 | 12,691 | 955 | 3 | 24,855 |
| of which CAPEX | 4,467 | 5,934 | 4,595 | 795 | 4 | 15,795 |
| Number of employees | 8,339 | 16,171 | 4,780 | 2,881 | – | 32,171 |
| Average number of full-time employees | 7,777 | 15,270 | 4,276 | 2,714 | – | 30,037 |
|
|
January–December 2007 or December 31, 2007 (restated) | |||||
|---|---|---|---|---|---|---|
| SEK in millions | Mobility Services | Broadband Services | Eurasia |
Other operations |
Eliminations | Group |
| Net sales | 45,115 | 44,478 | 10,338 | 2,049 | -5,636 | 96,344 |
| External net sales | 42,738 | 41,547 | 10,332 | 1,727 | – | 96,344 |
| EBITDA excluding non-recurring items | 13,084 | 12,821 | 5,255 | -161 | 22 | 31,021 |
| Non-recurring items | -364 | -468 | – | 142 | 2 | -688 |
| Amortization, depreciation and impairment losses | -4,162 | -6,162 | -1,278 | -315 | 42 | -11,875 |
| Income from associated companies and joint ventures | -172 | 222 | 6,906 | 740 | 1 | 7,697 |
| Operating income/loss | 8,386 | 6,413 | 10,883 | 406 | 67 | 26,155 |
| Financial items, net |
|
|
|
|
|
-904 |
| Income taxes |
|
|
|
|
|
-4,953 |
| Net income |
|
|
|
|
|
20,298 |
| Investments in associated companies and joint ventures | 274 | 885 | 31,572 | 334 | – | 33,065 |
| Other operating segment assets | 86,076 | 54,332 | 16,008 | 4,734 | -1,789 | 159,361 |
| Unallocated operating assets |
|
|
|
|
|
12,111 |
| Other unallocated assets |
|
|
|
|
|
12,165 |
| Total assets |
|
|
|
|
|
216,702 |
| Operating segment liabilities | 13,145 | 13,904 | 3,708 | 4,904 | -1,800 | 33,861 |
| Unallocated operating liabilities |
|
|
|
|
|
29,751 |
| Other unallocated liabilities |
|
|
|
|
|
43,995 |
| Adjusted equity |
|
|
|
|
|
109,095 |
| Total equity and liabilities |
|
|
|
|
|
216,702 |
| Investments | 5,468 | 6,264 | 7,679 | 1,301 | -10 | 20,702 |
| of which CAPEX | 4,168 | 5,722 | 3,114 | 527 | – | 13,531 |
| Number of employees | 8,052 | 17,294 | 3,862 | 2,084 | – | 31,292 |
| Average number of full-time employees | 7,186 | 16,197 | 3,051 | 2,127 | – | 28,561 |
External net sales were distributed by product area as follows.
|
|
January–December | |
|---|---|---|
| SEK in millions | 2008 | 2007 |
| Mobile communications | 56,213 | 50,418 |
| Fixed communications | 39,473 | 38,535 |
| Other services | 7,899 | 7,391 |
| Total | 103,585 | 96,344 |
Fixed communications include internet, data and TV services. Other services include equipment sales, managed services and financial services.
Net sales by external customer location and non-current assets, respectively, were distributed among individually material countries as follows.
|
|
January–December | December 31 | ||||||
|---|---|---|---|---|---|---|---|---|
|
|
2008 | 2007 | 2008 | 2007 | ||||
|
|
Net sales | Non-current assets | ||||||
|
|
SEK in millions | Percent | SEK in millions | Percent | SEK in millions | Percent | SEK in millions | Percent |
| Sweden | 35,890 | 34.7 | 36,046 | 37.4 | 22,373 | 13.7 | 23,336 | 17.0 |
| Finland | 16,781 | 16.2 | 16,735 | 17.4 | 48,604 | 29.8 | 41,982 | 30.7 |
| Norway | 10,287 | 9.9 | 9,603 | 10.0 | 28,455 | 17.5 | 29,941 | 21.9 |
| All other countries | 40,627 | 39.2 | 33,960 | 35.2 | 63,671 | 39.0 | 41,604 | 30.4 |
| Total | 103,585 | 100.0 | 96,344 | 100.0 | 163,103 | 100.0 | 136,863 | 100.0 |
Net sales by external customer location were distributed among economic regions as follows.
|
|
January–December | |||
|---|---|---|---|---|
|
|
2008 | 2007 | ||
|
|
SEK in millions | Percent | SEK in millions | Percent |
| European Economic Area (EEA) | 88,448 | 85.4 | 84,452 | 87.6 |
| of which European Union (EU) member states | 78,108 | 75.4 | 74,817 | 77.7 |
| Rest of Europe | 1,419 | 1.4 | 1,068 | 1.1 |
| North-American Free Trade Agreement (NAFTA) | 688 | 0.6 | 555 | 0.6 |
| Rest of world | 13,030 | 12.6 | 10,269 | 10.7 |
| Total | 103,585 | 100.0 | 96,344 | 100.0 |
The TeliaSonera Group offers a diversified portfolio of mass-market services and products in highly competitive markets. Hence, the Group's exposure to individual customers is limited.