TeliaSonera Q2 net income falls by 12.1%

TeliaSonera saw a drop in sales and profit for the second quarter of the year, as its Yoigo business in Spain continued to be a cause for concern.

The company said it is reviewing its position in Spain as the business remains sub-scale with a seven per cent market share, although margins did recover in Q2. Yoigo saw net sales fall 19.3 per cent year-on-year, despite subscriptions increasing by 5.4 per cent.

Overall, second quarter net sales in reported currency fell 1.2 per cent to SEK25.0 billion (US$3.65 billion), while net income decreased by 12.1 per cent to SEK3.55 billion.

The Q2 results are the first since the company moved to a country-based operating model in April. TeliaSonera’s strategic framework has the clear aim of enhancing core operations and to “explore opportunities in closely related areas”.

In Eurasia, where the group was caught up in controversy over its earlier conduct in Uzbekistan, the new management team has “increased focus on governance, control and new business initiatives”. Net sales for the region in local currencies increased 6.7 per cent, although it fell three per cent when measured in reported currency.

Eurasia delivered strong profitability with solid development in Kazakhstan and Nepal. Organic revenue growth was seven per cent, fuelled by a 35 per cent increase in data revenue, which accounts for 14 per cent of total sales in the region.

In Europe, the company’s net sales decreased 6.6 per cent. More positively, the number of subscriptions increased while churn decreased in all Nordic markets. The operator’s priority is to improve its competitive position in its Nordic and Baltic markets.

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