Telia AB - Interim Report January - September 2002

Telia AB - Interim Report January - September 2002

Q3 in Brief: Underlying EBITDA improved 25 % to MSEK 4,281 (3,420). Substantially strengthened margin from 24 % to 30 %


· Strong free cash flow of MSEK 2,059
· Restructuring of the Danish fixed network operations affected operating income by MSEK -3,072
· Costs totaling MSEK 12,089 for restructuring and streamlining efforts, primarily within Internatio-nal Carrier and the Danish fixed network operations, impacted operating income, falling to MSEK -10,815 (2,745)
· Net sales increased to MSEK 14,496 (14,431). Sales for comparable units increased 5 %
· The prospectus for the merger with Sonera was published on September 30, 2002
Comments from Anders Igel, President and CEO of Telia:
- The efficiency programs carried out during the year are beginning to yield positive results. It is gratifying to note that earnings, excluding restructuring costs and writedowns, showed substantial improvement during the quarter. The significant increase in the underlying EBITDA margin combined with reduced investments resulted in a sharp increase in free cash flow.
- During the third quarter, we have reviewed operations that did not show satisfactory earnings trends, specifically the international carrier operations, which we previously announced, and the fixed network operations in Denmark. We are now taking action to deal with operations that are a drain on Telia's earnings. These actions have resulted in substantial costs for restructuring and write-downs, which explains the negative operating income.
- On September 30, we published the prospectus for the planned merger between Telia and Sonera and merger preparations are fully underway.

------------------------------------------------------------
This information was brought to you by Waymaker http://www.waymaker.net
The following files are available for download:
http://www.waymaker.net/bitonline/2002/10/25/20040904BIT23020/wkr0006.pdf Interim Report