TeliaSonera pledges continue 4G investment

TeliaSonera pledges continued 4G investment

17 JUL 2013

TeliaSonera reported solid results for the second quarter of 2013, as it pledged to continue its investment in its 4G network.

In a statement, Per-Arne Blomquist, its acting CEO, said: “We maintain focus on securing our long term profitability by implementing efficiency measures and investing for the future in 4G and fibre.”

With regard to its 4G plans, the company stated that it will “significantly expand” its network in Sweden, targeting 92 per cent geographic coverage in the next two years, and that “coverage is prioritised across the group”.

And having failed to offload its Spanish unit Yoigo, it also said that it is looking at a “significant expansion” of its 4G network in the country, targeting 99 per cent population coverage by the end of 2014, supported by further expansion of its 3G network.

On a group level, TeliaSonera reported a net income attributable to shareholders of SEK4.03 billion ($611 million), down 16.9 per cent from SEK4.85 billion, on revenue of SEK25.27 billion, down 3.9 per cent from SEK26.29 billion.

In its Mobility Services unit, revenue pressure “eased somewhat” and margins improved, supported by higher billed revenue and reduced costs. But lower regulated interconnect costs across all markets also had an impact.

It also said it launched new consumer mobile propositions in Sweden, Norway and Denmark, which offer flat rates for voice and messaging services alongside bucket priced data related to usage.

Operating income in the Mobility Services unit was SEK2.5 billion in the quarter, compared with a prior-year loss of SEK455 million, on revenue of SEK12.01 billion, down 4.5 per cent from SEK12.58 billion, impacted by exchange rate fluctuations and reduced interconnect fees.

The company’s Eurasia business unit, which includes its holdings in Russia’s MegaFon and Turkey’s Turkcell, saw a 50.8 per cent drop in operating income to SEK3.15 billion, on revenue of SEK5.2 billion, up 5.4 per cent year-on-year.


Steve Costello

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