3 May 2011
Returning to organic revenue growth
• Net sales decreased 3.9 percent to SEK 26,090 million (27,135). Net sales in local currencies and excluding acquisitions increased 2.5 percent.
• The addressable cost base in local currencies and excluding acquisitions decreased 2.9 percent.
• EBITDA, excluding non-recurring items, increased 1.6 percent to SEK 8,963 million (8,821) and the margin to 34.4 percent (32.5). The increase in local currencies and excluding acquisitions was 8.8 percent.
• Operating income, excluding non-recurring items, was SEK 7,462 million (7,477) as higher EBITDA, excluding non-recurring items, was offset by lower contribution from associated companies.
• Net income attributable to owners of the parent company increased 6.4 percent to SEK 4,722 million (4,440) and earnings per share to SEK 1.05 (0.99).
• Free cash flow was SEK 3,372 million (3,259).
• During the quarter the number of subscriptions grew by 2.3 million, of which 1.0 million new subscriptions in the consolidated operations and 1.3 million in the
associated companies, totaling 149.9 million.
• Group outlook for 2010 remains unchanged from Year-end Report 2009.
(Table included in attached pdf)
Comments by Lars Nyberg, President and CEO
“In the first quarter we managed to grow revenues in local currencies again. It is encourag-ing that growth can be seen across several of our markets. Eurasia continues to be our growth engine, with a revenue growth of more than twelve percent in local currencies. This was twice as high as in the fourth quarter last year and was achieved with maintained high profitability.
During the quarter we rebranded our operations in Nepal to Ncell and in Tajikistan to Tcell. This marks the companies’ further integration into the TeliaSonera group and their entrance into a new phase of dynamic development, where new segments of the market will be tar-geted, which will further strengthen their leading positions.
Growth and profitability in Sweden continue to be robust, and is driven by Mobility Services. We see above industry revenue growth in this market and it is encouraging that growth in both the consumer and business segment is healthy. For the first time in several quarters, Finland and Denmark reported positive revenue growth in local currencies, as a result of strong growth in data usage and higher equipment sales.
TeliaSonera was the first operator in the world to launch commercial 4G services in 2009. The extensive 4G network roll-out will continue throughout 2010 to 25 cities in Sweden and 4 cities in Norway. We have also been awarded a 4G license in Finland and plan to bid for forthcoming licenses in Denmark and the Baltic countries.
We believe that now is the time to selectively increase our investments in bandwidth, both in our fixed and mobile networks. However, we made the decision in the first quarter to invest cautiously as we first wanted to get confirmation of growth, especially in Eurasia. Some of our planned investments have also been delayed due to factors such as weather conditions in the Nordic region and negotiations with suppliers. Therefore, the investment level in 2010 may end up lower than we planned at the beginning of this year.
We are still targeting an unchanged cost base this year, as some of the previous savings will be re-invested to support growth. The growth that we saw in the first quarter makes me more confident than a couple of months ago that we will reach our forecast of somewhat higher net sales in local currencies than last year.”
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