Earnings short fall for Swedish – Finnish telecom supremo, TeliaSoneraWednesday, 19 October 2011
TeliaSonera reports a profit before tax of Skr7,251 million for the third quarter of 2011. That compares with profit of Skr8,251 million a year ago.
Analysts had on average expected a profit of Skr7,399 million, according to Reuters consensus poll. Turnover amounted to Skr26,612 million, compared to Skr26.873 million a year earlier.
The underlying operating profit, according to the measured EBITDA, excluding special items amounted to Skr9,802 million, compared to Skr9.756 billion a year earlier. These are low as the expectation was of Skr9.754 million, according to Reuters.
The outlook for 2011 is unchanged, according to the interim report.
"We are delighted to once again be able to report strong results and that despite the current economic situation we continues to experience growth," writes CEO Lars Nyberg in the report.
AdvertisementHe refers to the turnover increased by 2.4 percent in the third quarter, excluding acquisitions measured in local currencies. Overall, and measured in kronor, decreased sales by 1.0 percent.
"Demand for our services is greater than ever and the challenge lies in our ability to capitalize on this," writes Mr Nyberg.
“This was another good quarter, but to be extremely good. I am pleased that we improve the profit margin for the twelfth consecutive quarter, I think that's an achievement,” says TeliaSonera's CEO Lars Nyberg.
Growth of 2.4 percent was not so bad, according to Nyberg, although it could have been a little higher.
“And so we had a very strong cash flow, so it feels good.”
TeliaSonera has not experienced any slowdown due to the debt crisis.
“We see no signs of an economic downturn, but as telecom companies, we are late in the cycle, so we are observant.”
TeliaSonera is continuing to invest in lowering the cost of roaming, the mobile moves between different operators' networks, to get customers to surf more abroad. This has meant that data for roaming volumes will more than doubled.
“I am convinced that the entire industry will follow this, and that the price difference between being in its home market and be in another country will fall dramatically in coming years. For consumers, it is great, but I think it's good for industry as well,” says Lars Nyberg.
In May, TeliaSonera lowered charges in the Nordic and Baltic countries, and on Monday it lowered prices for roaming across Europe.
By Scancomark.se Team
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