TeliaSonera posts 13% drop in earnings

Nordic carrier TeliaSonera on Tuesday published a 13 per cent drop in third quarter profit, which came to SEK5.4bn (Eur541m), compared to SEK6.2bn in the same period last year.

Despite the global turmoil, the company still managed to boost revenues for the three month period by 4 per cent annually, to SEK25.8bn.

TeliaSonera’s total subscriber base reached 127.9 million at the end of the third quarter, following the addition of 1.2 million new subscriptions in majority owned operations and 3.8 million in associated companies.

In late September, the carrier snapped up controlling stakes in two mobile operators in emerging markets, Spice Nepal in Nepal and Applifone in Cambodia.

The Swedish-Finnish operator acquired 51 per cent of the shares in TeliaSonera Asia Holding from Visor Group that will remain owner of the other 49 per cent.

The holding firm owns 80 per cent of the shares in Spice Nepal, the second largest mobile operator in Nepal, and 100 per cent Applifone, a start up mobile operator in Cambodia.

TeliaSonera paid out a total of SEK3.2bn (Eur330m) in cash in the transaction.

Spice Nepal launched operations in September 2005 and is the second largest mobile operator in Nepal, with around 1.6 million subscriptions and an estimated market share of approximately 41 per cent.

Applifone launched in October 2007 and is the fourth largest mobile operator in Cambodia, with 97,500 subscriptions and an estimated market share of approximately 3 per cent.