3 May 2011
Continued good growth with improved margins
• Net sales rose 6.5 percent to SEK 49,672 million (46,625). In local currencies net sales rose 6.2 percent.
• Net income attributable to shareholders of the parent company increased to SEK 8,595 million (7,808) and earnings per share to SEK 1.91 (1.74).
• Free cash flow was SEK 3,581 million (6,087).
• Net sales rose 5.7 percent to SEK 25,274 million (23,901). In local currencies net sales rose 5.9 percent.
• EBITDA, excluding non-recurring items, increased to SEK 7,978 million (7,516) and the margin to 31.6 percent (31.4).
• Operating income, excluding non-recurring items, increased to SEK 7,410 mil-lion (6,575).
• Net income attributable to shareholders of the parent company rose to SEK 4,130 million (3,832) and earnings per share to SEK 0.92 (0.85).
• Free cash flow was SEK 2,471 million (3,558).
• The number of subscriptions reached 122.9 million at the end of the second quarter with 1.4 million new subscriptions in the majority-owned operations and 2.2 million in the associated companies, compared to the end of the first quarter 2008.
• The group outlook for 2008 remains unchanged.
Comments from Lars Nyberg, President and CEO
“The overall market trends were essentially unchanged and we reported a satisfactory set of numbers for the second quarter. For the first time in more than a year, we managed to increase our margins. Our Eurasian operations develop strongly and Mobility Services showed good growth with improved margins, whereas margins within Broadband Ser-vices are under continued pressure. Intensive campaigns to promote mobile broadband affected the penetration growth of fixed broadband.
TeliaSonera is a strong business, based on leading market positions in the Nordic and Baltic countries. We are also very well positioned in several emerging markets with high growth potential and continue to look for new investment opportunities. Our success is and will be based on providing high quality networks and first class services at competi-tive cost. Hence, we need to continuously improve our operational efficiency to success-fully manage the ongoing migration from traditional fixed voice services to mobility and IP-based services. This will drive strong and sustainable earnings growth and maximize value for our shareholders.”