Telia Company’s Swedish operations accounted for over 43% of overall revenues
Swedish telecom operator Telia Company (formerly TeliaSonera) posted a net profit of 3.76 billion kronor ($467.4 million) in the first quarter of 2016, up 1.4% compared to a net profit of 3.71 billion kronor in the same quarter the previous year. Revenue declined 0.9% to 20.39 billion kronor from 20.59 billion kronor in Q1 2015.
The company’s EBITDA for the quarter reached 6.21 billion kronor, up 10.4% year-on-year. Total capex for the first quarter of the year amounted to 3.06 billion kronor, climbing 19.8% versus the year-ago quarter.
In Sweden, the telco posted revenues of 8.83 billion kronor, declining 2.4% year-on-year. Swedish operations accounted for 43.3% of the group’s overall revenues in the first quarter of the year.
“Our Swedish operation was a key contributor to the higher profitability, supported by better sales mix and lower costs. Service revenue growth in the consumer segment stayed positive, backed by solid demand for fiber solutions, good traction within TV and mobile cus-tomers migrating to larger data buckets,” said Telia Company President and CEO Johan Dannelind.
In the first quarter of 2016, Telia Company generated revenue of 3.79 billion kronor in Eurasia, representing 18.6% of the company’s overall revenue in the period. The largest markets for Telia Company in terms of subscribers in Eurasia are Kazakhstan and Uzbekistan.
Telia Company’s Eurasia business includes operations in Kazakhstan, Uzbekistan, Azerbaijan, Georgia, Moldova and Tajikistan. The group is being investigated by U.S. and Swedish authorities over a bribery scandal in Uzbekistan.
“In mid-April, we completed the divestment of our Nepalese operation Ncell to Axiata. The process to exit the other Eurasian markets continues and we will give further updates as we progress. The operating environment remains demanding in several parts of the region, with intense competition and pressure on currencies due to macroeconomic challenges,” the executive said.
