Swedish mobile operator TeliaSonera’s (OMX: TLSN) reports speak of gradual decline in legacy business but of some successes on the growth area front and new businesses. TeliaSonera is keenly aware of the wider industry need to shift from voice to data centric business model. International roaming price cuts and premium partnership with Spotify were given as examples of the future direction of the firm. Double-digit growth in Eurasia and strong fibre optic broadband demand in Nordic countries are the highlights where as sales and margins in mobility services are under pressure on mature markets. Growth in Spanish Yoigo, that has been rumoured to be up for grabs slowed.
Windfall from MegaFon transaction, including a double digit billion one-time dividend, contributed a large free cash flow increase all the way to 14.79 billion SEK. While this alone makes the MegaFon venture a big success, deadlock in Turkcell (İMKB: TCELL, NYSE: TKC) remains. There were two large extraordinary items in Q2 accounts, which pretty much cancelled each other out. Both MegaFon capital gains and impairment of Mobility Services Norway (NetCom) and Lithuania (Omnitel) totaled around 3 billion.
Second quarter net sales were almost 26.3 billion, EBITDA hovers around 9 billion excluding one-off items, and net income was just above 4.5 billion with EPS of 0.98 SEK. TeliaSonera has ”revised” its group outlook for 2012 for growth in net sales in local currencies excluding acquisitions of 0-1 percent (H1 2012: 1.5%) and EBITDA margin excluding non-recurring items of around 35% (H1 2012: 34.3%). Previously the company was guiding for 1-2 percent growth and flat EBITDA margin compared to last year (35.4%). CAPEX-to-sales ratio guidance of 13-14% was maintained.
No comments:
Post a Comment