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Swedish Telecoms companies reported lower profits than expected

Thursday, 19 April 2012
Swedish telecom giants, TeliaSonera and Tele2 reported their performances this morning and it was not very encouraging as would have been expected.

TeliaSonera made a profit before tax of Skr5.4 billion for the first quarter of this year and it is much worse than expected and lower than the earnings in the quarter bringing the year on 6.7 billion

But sales, including the now to controversial dictatorship countries, rose to Skr25.7 billion, and it's almost a billion more than last year.

Tele 2 on its part has also come up with its figures for the first quarter and it shows that the company's profits fell.

Profit was below expectations of Skr1.2 million, although sales rose to Skr10.5 billion compared with Skr9.6 billion a year earlier.

Net sales amounted to Skr 10,481 (9,642) million corresponding to a growth excluding exchange rate difference of 8 percent in the quarter. EBITDA in Q1 2012 amounted to Skr 2,571 (2,544) million, equivalent to an EBITDA margin of 25 (26) percent.

"The first quarter of 2012 was as challenging as expected; many of the structural trends foreseen in our industry are now materializing. We embrace the accelerating move from voice to data and migration from prepaid to postpaid. We believe this is a natural evolution likely to improve the operational performance of mobile operators over the medium term. More immediate and readily evident in Q1 2012 are additional costs associated with the transition from traditional voice to a more data centric emerging business model.

Still, the first quarter of 2012 has continued to show solid revenue growth in our main markets. We concentrated our efforts on maintaining strong customer momentum within our entire mobile arena," write the CEO Mats Granryd
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