TeliaSonera January-June 2009
Strong performance driven by cost savings
• Net sales increased 8.7 percent to SEK 27,478 million (25,274). Net sales in local currencies and excluding acquisitions decreased 0.7 percent.
• The addressable cost base in local currencies and excluding acquisitions de-creased 5.8 percent.
• EBITDA, excluding non-recurring items, increased 13.3 percent to SEK 9,043
million (7,978) and the margin to 32.9 percent (31.6).
• Operating income, excluding non-recurring items, increased 10.3 percent to SEK 8,176 million (7,410).
• Net income attributable to owners of the parent company rose to SEK 4,469 million (4,130) and earnings per share to SEK 1.00 (0.92).
• Free cash flow rose to SEK 3,499 million (2,471).
• During the quarter the number of subscriptions grew by more than 2.4 million, of which 0.9 million new subscriptions in the majority-owned operations and 1.5 mil-lion in the associated companies, totaling 139.4 million.
• The forecast EBITDA margin has been raised and is expected to be higher in 2009 than in 2008. Net sales in local currencies and excluding acquisitions are expected to be in line with or slightly below the level of 2008. The addressable cost base is expected to be lower than in 2008 and the CAPEX-to-sales ratio 13-14 percent.
• Net sales increased 10.1 percent to SEK 54,682 million (49,672). Net sales in local currencies and excluding acquisitions decreased 0.1 percent.
• Net income attributable to owners of the parent company increased to SEK 8,909 million (8,595) and earnings per share to SEK 1.98 (1.91).
• Free cash flow rose to SEK 7,781 million (3,581).
(Table included in attached pdf)
Comments by Lars Nyberg, President and CEO
“I am very pleased that despite a challenging macroeconomic environment in the second quarter, we reported among the highest EBITDA, excluding non-recurring items, in the com-pany’s history. We are delivering on the issues that we can control ourselves, namely cost reductions and careful capital spending. As a result, our cash flow for the first six months more than doubled compared to last year’s first half.
Our cost efficiency measures are now having visible effects throughout our operations and in Sweden and Finland operating expenses decreased by as much as 12 percent in the second quarter. We maintained the profitability improvement in Broadband Services and also noted some effects within Mobility Services. At the same time, Eurasia maintained its high profitability.
We experienced similar market trends in the second quarter as in the first quarter with lower equipment sales, reduced roaming due to less business travel and lower usage. In Eurasia, however, organic revenue growth improved somewhat compared to the first quarter.
Looking ahead, we expect that our efforts to lower addressable costs and capital expendi-ture will offset the negative impact from declining GDP and rising unemployment in our mar-kets. Therefore we are raising our outlook on the EBITDA margin and now expect a higher margin in 2009 than in 2008.”