All regions contribute to stable margin
Second quarter summary
· Net sales in local currencies, excluding acquisitions and disposals, decreased 1.2 percent. In reported currency, net sales decreased 1.2 percent to
Comments by Johan Dennelind, President and CEO
”I am pleased to present the first interim report reflecting our new country based operating model implemented in April.
In the second quarter, group profitability remained steady with an underlying EBITDA margin of 35.3 percent. Net sales continued to be affected by lower equipment sales, while group service revenues were stable.
Our strategic framework was further outlined during the spring, with a clear aim to enhance our core operations and also explore opportunities in closely related areas.
In early July, we took an important step in our targeted direction by announcing the acquisition of Tele2’s Norwegian operations. The transaction is a great strategic fit and will reinforce our number-two position in the country, enhance our customer offerings and generate significant cost synergies.
In order to have the most satisfied and loyal customers, there is a need to further simplify our operations and transform legacy to create agility and cost efficiency across our company.
Demand for mobile data services remains strong and it is important for us to monetize on this opportunity. We continue to develop our data -centric price models and see further positive effects from customers migrating to new price plans. In this context it is encouraging to note that the number of subscriptions increased and churn decreased in all of our Nordic mobile operations in the second quarter.
In Eurasia our new management team has increased focus on governance, control and new business initiatives. The region continues to deliver strong profitability, with an EBITDA margin improving to 54.4 percent, supported by solid development in
Creating a long term sustainable business is a central part of our daily agenda. We have continued to roll out our anti-corruption awareness and training across the company during the quarter. Further, we have engaged in dialogue with key stakeholders on Freedom of Expression in several of our Eurasian countries.
As a result of lower revenues in
Questions regarding the reports TeliaSonera AB Investor Relations SE–106 63
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The following files are available for download:
http://mb.cision.com/Main/40/9617923/267767.pdf Full report in Eng
http://mb.cision.com/Public/40/9617923/8dc0e9e31c996965.xlsx Financial Operational data 2014 Q2
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