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2016-01-29

TeliaSonera: TeliaSonera Year-end Report January-December 2015

Further improvements in core markets

FOURTH QUARTER SUMMARY

· Region Eurasia is reported as discontinued operations.
· Net sales in local currencies, excluding acquisitions and
disposals, increased 2.9 percent. In reported currency, net sales
increased 5.9 percent to SEK 22,655 million (21,399). Service
revenues in local currencies, excluding acquisitions and dis-posals,
grew 1.1 percent.

· EBITDA, excluding non-recurring items, increased 9.0 percent in
local currencies, excluding acquisitions and disposals. In reported
currency, EBITDA, excluding non-recurring items, grew 11.1 percent to
SEK 6,556 million (5,902). The EBITDA margin, excluding non-recurring
items, improved to 28.9 percent (27.6).

· Operating income, excluding non-recurring items, increased 2.8
percent to SEK 4,938 million (4,804).

· Total net income attributable to the owners of the parent
decreased to SEK -3,010 million (2,938) and earnings per share to SEK
-0.70 (0.68), mainly impacted by non-cash write-downs of SEK 7,200
million.

FULL YEAR SUMMARY

· Region Eurasia is reported as discontinued operations.
· Net sales in local currencies, excluding acquisitions and
disposals, increased 2.4 percent. In reported currency, net sales
increased 6.7 percent to SEK 86,569 million (81,131). Service
revenues in local currencies, excluding acquisitions and dis-posals,
declined 0.4 percent.

· Total net income attributable to the owners of the parent
decreased to SEK 8,551 million (14,502) and earnings per share to SEK
1.97 (3.35), mainly impacted by non-cash write-downs of SEK 7,200
million.

· The Board of Directors proposes an ordinary dividend of SEK 3.00
per share (3.00).

· Future dividend policy is changed.
Comments by Johan Dennelind,
President and CEO

"Thanks to great efforts from our employees during the year we are
well on track to shape TeliaSonera for the future. A solid foundation
is now in place and I am pleased that our core markets continued to
improve in the fourth quarter at the same time as we started to
execute our decision to reduce our presence in Eurasia. Due to the
divestment process, region Eurasia is now reported as discontinued
operations and results have also been impacted by non-cash
write-downs.

In Sweden, consumer demand for high speed internet access remains
strong. We continue to build out fiber and 4G at a high pace in line
with our strategy to offer the best network connectivity. Performance
in the fourth quarter shows that we are on the right track, where a
2.5 percent increase in service revenues combined with good cost
control translated into double-digit EBITDA growth. The improvement
was propelled by a record number of new fiber connections and our
network now exceeds 1.3 million homes passed, boosting subscription
intake and ARPU growth within both broadband and TV. Our mobile
proposition was further strengthened when we recently introduced free
roaming for our Swedish mobile customers in the Nordic and Baltic
regions.

On a further positive note, profitability in Finland improved and
mobile service revenue growth turned positive as a result of price
adjustments and up sales activities. In Norway, we continued to
strengthen our position and 4G population cov-erage passed 95
percent. Further, we are on track reaching the SEK 1 billion synergy
target from Tele2 acquisition with full effect in 2016.

In December, we announced the divestment of our Nepalese operation to
Axiata, three months after the announcement to refocus the group to
the Nordic and Baltic region. The process to leave the other Eurasian
markets continues. Meanwhile, we are operating these units within the
governance structure set up to secure responsible operations and exit
process. Operationally, the competitive situation remains demanding
in parts of the region and macro challenges have put pressure on
currencies.

Based on our good cash flow in the year and the solid financial
position, the board proposes a maintained dividend of SEK 3.00 per
share for the fiscal year 2015, which is in line with our stated
ambition.

In order to reflect the changing structure of the group, we have
changed our future dividend policy and capital structure targets. The
ambition is to distribute at least 80 percent of free cash flow based
on continuing operations with an ambition to pay out a minimum of SEK
2 per share for the fiscal year 2016. We continue to aim for a solid
credit rating of A- to BBB+ and a leverage corresponding to Net
debt/EBITDA of 2x plus/minus 0.5x.

As previously stated, 2015 and 2016 are two years with heavy
investments for TeliaSonera. We foresee continued high activity in
2016, due largely to an accelerated roll-out of fiber in Sweden.
Further, we will step up our business transfor-mation activities,
mainly targeting our IT and product legacy, which is necessary to
reduce costs and strengthen long-term competitiveness.

In 2016, the ambition is to maintain EBITDA on a comparable basis at
the same level as in 2015 for the continuing operations and CAPEX
excluding license and spectrum fees for the continuing operations is
expected to be SEK 14-15 billion."

Stockholm, January 29, 2016

Johan Dennelind
President and CEO

Questions regarding the reports

TeliaSonera AB
www.teliasonera.com/investors
Tel. +46 8 504 550 00

TeliaSonera AB discloses the information provided herein pursuant to
the Swedish Securities Markets Act and/or the Swedish Financial
Instruments Trading Act. The information was submitted for
publication at 07:00 CET on January, 29, 2016.

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http://news.cision.com/teliasonera/r/teliasonera-year-end-report-january...
http://mb.cision.com/Main/40/9904490/470408.pdf

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