TeliaSonera looks at ways to become a growth companny

Swedish telecommunications firm TeliaSonera (OMX: TLSN) reported underwhelming numbers from Q1 2013. Net Sales were down 4.5% compared to last year at 24.5 billion SEK. EBITDA margin stayed firm just below 35%. Net income was nearly flat at 4.5 billion translating to earnings per share of 0.95 SEK (0.11 EUR). Currency effects were rather large. Severe winter and calendar effects existed as well. The company isn't sure what the effect of an earlier Easter had on comparisons

Due to topline pressure, particularly from voice and broadband struggles lead to continued efficiency measures. Not unexpectedly, much of the focus continues to be on ethical issues. The company is starting numerous internal and external projects to look into its practises in the Far East. The company thinks that there were growing pains in fibre installation process but that signs are increasingly pointing to the right call having being made here with fibre offering demand growing strongly.

TeliaSonera is taking a leading role to try to bring North American-esque pricing model of data usage charges to Europe. It will be difficult to manage that in Europe. The first step will be taken in Sweden and the company foresees duplicating that model elsewhere later. The plan is to have flat voice and texting where as mobile data charges come from the amount of data use. One invoice can contain several devices and persons in family accounts. Price competition seems to be toughest in Finland. TeliaSonera also thinks it cannot compete with Tele2 (OMX: TEL2 B) with prices in Norway and needs to have different value proposition.

Acting CEO Per-Arne Blomquist stressed many times that the industry can return to a growth industry once the increased mobile data use can be monetized. Regarding consolidation in Denmark the company thinks that the joint venture with Telenor (OSE: TEL) was a good decision but that he does not see any market consolidation in Denmark due to regulatory concerns. The company would certainly love to see countries such as Sweden and Denmark to have only two companies, but does not foresee Brussels signing off on that.

Given that Yoigo divestment is now seemingly no longer in the agenda since the company said it was not happy with the offers and regulatory difficulties, and dividends from Turkcell (ISE: TCELL, NYSE: TKC) seemingly no closer than before, any extra dividend hope seem lower. The stock is down just over 2% heading into final hour of trading.