Nordic operator group TeliaSonera reported an increase in profit and cashflow during the fourth quarter as it benefited from the IPOs of MegaFon and Kcell, in which it owns stakes.

The reduction in TeliaSonera’s ownership of Russia’s MegaFon from 35.6 percent to 25.2 percent netted the group SEK8.58 million ($1.35 billion) while the reduction in its stake in Kazakhstan’s Kcell from 86.9 percent to 61.9 percent generated income of SEK3.41 billion. As a result of these transactions, TeliaSonera is now comfortably inside its debt target.

Net income for the fourth quarter increased by 34.9 percent to hit SEK6.88 billion, up from SEK5.1 billion in the same period of 2011. However, net sales in reported currency fell by 0.7 percent to SEK27.07 billion during the period. EBITDA in reported currency fell by 3.2 percent to SEK8.97 billion.

The group gained a total of 4 million subscriptions during the period with 1.7 million in its consolidated operations and 2.3 million from its operations abroad. Total subscriptions stood at 183 million by the end of the period.

The group’s operations in Eurasian markets delivered positive results with a 16 percent growth in net sales.

Growth in Uzbekistan was particular strong with the Ucell unit recording a 76.7 percent increase in net sales, to SEK749 million, and a 23 percent increase in subscriptions year-on-year. The market was affected by the decision of the Uzbek government to revoke the licence of market leader MTS.

However, TeliaSonera faced allegations of corruption and money laundering connected to its Uzkbekistan operations during the period. The company’s board commissioned an external review by a Swedish law firm while the Swedish Prosecuting Authorities are also investigating the issue.

In his results statement, CEO Lars Nyberg reiterated that the company is confident that these allegations are legally unfounded.

TeliaSonera is currently working to reduce costs by SEK2 billion over the next two years, with around 2,000 jobs due to be cut. 300 roles were lost during the fourth quarter.