TeliaSonera records 15% rise in net profit in Q3

TeliaSonera reported a slight decline in Q313 revenues, although net profit was higher.

The telco saw revenues fall by 1.8 per cent to SEK25.38 billion (US$3.9 billion) during the quarter.

Net profits rose though by 15.1 per cent to SEK4.6 billion as operating costs fell by 5.4 per cent.

The decline in revenues was put down to the difficult economic environment in the company’s markets and lower regulated mobile termination rates.

TeliaSonera ended the quarter with 207 million customers, up on the 201.7 million a year ago.

Free cash flow increased to SEK7.31 billion, mainly explained by dividends from MegaFon net of taxes of SEK1.94 billion and positive changes in working capital.

Johan Dennelind, president and CEO commented that, "My initial observations as new CEO are that TeliaSonera has a solid asset base with a diversified product portfolio, attractive footprint, strong brands and competent people. The mix of mature and emerging markets gives us a robust foundation."

He warned though that "in recent years our position has weakened in too many of our markets and it is essential to strengthen our competitiveness going forward."