TeliaSonera reports drop in revenue and profit

European operator group TeliaSonera has seen net sales and operating income decline in the first quarter of 2014.

The operator reported net sales of SEK23.97bn ($3.64bn) for the quarter; a 2.5 per cent year on year drop on the SEK24.58bn generated in 1Q13. Meanwhile, operating income dropped 5.2 per cent year on year; from SEK6.63bn to SEK6.29bn, and net income fell by four per cent to SEK3.95bn.

The operator blamed a drop in sales of low margin equipment as well as the continued impact of lower regulated mobile termination rates in Europe for the decline.

President and CEO Johan Dennelind noted that the operator’s 4G network in Sweden now provides coverage to 90 per cent of the population and that it is committed to raising this to 99 per cent by the end of the year. He also explained that the markets TeliaSonera operates in are being characterised by changing consumer behaviour and a trend towards convergence.

“Our journey ahead will be based on three pillars; strengthen and develop our core business in the Nordic and Baltic region, take Eurasia to the next level by monetizing on the data opportunity and examine possible income opportunities in closely related adjacent industries,” he said.

“Geographically, focus remains on the markets where we are already present, with strict criteria for return on capital. We have a prudent but pragmatic approach to M&A and will mainly aim for potential consolidation opportunities in existing markets.”

Dennelind also voiced his concern regarding the European parliament’s recent vote on its Connected Continent package. He said that the legislation regarding net neutrality may limit the operator’s ability to meet demand from customers.

“We stress the importance of operators being able to run efficient networks and offer differentiated services to encourage innovation and investments,” he added.

The 10th annual LTE World Summit, the premier 4G event for the telecoms industry, is taking place on the 23rd-26th June 2014, at the Amsterdam RAI, Netherlands. Click here to download a brochure for the event.



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