Swedish telecoms group TeliaSonera reports that in the second quarter of 2014 its consolidated group revenues decreased by 1.2% year-on-year to SEK25.017 billion (USD3.663 billion), while underlying service revenues (in local currencies, excluding acquisitions and disposals) decreased by 0.4%. EBITDA, excluding non-recurring items, decreased by 1.0% to SEK8.836 billion in the three months to the end of June 2014, giving a stable EBITDA margin at 35.3%. Operating income, excluding non-recurring items, decreased by 10.4% to SEK6.347 billion in the quarter, explained by lower income from TeliaSonera’s associated companies MegaFon and Turkcell. Group net income decreased by 12.1% y-o-y to SEK3.545 billion in the April-June period.
Under a new reporting structure, in Sweden TeliaSonera’s net sales increased by 0.3% to SEK9.099 billion in 2Q14, including acquisitions and disposals (as the acquired companies Zitius, Quadracom Networks and Riksnet were consolidated in May), while in Europe (excluding Sweden) quarterly net sales decreased by 2.4% to SEK9.829 billion, and in Eurasia net sales in reported currency decreased 3.0% to SEK5.041 billion (although in local currencies Eurasian revenue was up by 6.7%). The group’s total number of consolidated (excluding associates) mobile, broadband, fixed telephony and pay-TV subscribers increased by around 300,000 year-on-year and 200,000 quarter-on-quarter to 71.36 million at 30 June 2014, including 64.15 million mobile users.
Underlying service revenues in Sweden decreased by 0.9% to SEK8.289 billion due to ‘weak performance in the B2B segment’. Swedish mobile service revenues decreased 1.7% due to lower interconnect revenues, and Swedish mobile subscriptions decreased by 1.6% year-on-year to 6.511 million, although the total increased marginally, by 5,500, quarter-on-quarter. Swedish fixed service revenues decreased 1.8% as growth in broadband and TV revenues failed to offset the decline in telephony. The customer base increased in all IP-based services, and the number of fibre connected homes reached 685,000, corresponding to a little over 15% of all Swedish households.