Sweden – Region and country development 2015

Improved growth in consumer service revenues in region Sweden

Share of group total, continuing operations (%)

Share of Group Sweden eng.ai

 

SEK in millions, except margins, operational data and changes

2015

2014

Change (%)

Net sales

37,336

36,456

2.4

Change (%) local organic

2.0

   

of which service revenues (external)

32,194

31,927

0.8

change (%) local organic

0.3

   

EBITDA excl. non-recurring items

14,267

14,311

-0.3

Margin (%)

38.2

39.3

 

Income from associated companies and joint ventures

-20

-5

 

Operating income excl. 
non-recurring items

9,797

10,130

-3.3

Operating income

9,284

9,746

-4.7

CAPEX excl. license and 
frequency fees

6,179

4,936

25.2

% of service revenues

19.2

15.5

 

EBITDA excl. non-recurring items less CAPEX

8,088

9,375

-13.7

Subscriptions, 
period-end (thousands)

     

Mobile

6,067

6,186

-1.9

Fixed telephony

1,896

2,054

-7.7

Broadband

1,306

1,275

2.4

TV

730

697

4.7

Employees, period-end

6,695

6,740

-0.7

Additional (unaudited) segment information available at www.teliasonera.com; see also the preamble to this Report for information on restated financial information.

In region Sweden, consumer demand for high-speed internet access remained strong. Fiber and 4G build-out continued at a high pace in line with the strategy to offer the best network connectivity. In the consumer segment, mobile billed revenues continued to grow with the launch of strong customer propositions. Offerings combining free voice and larger data buckets were launched and TeliaSonera was first in Sweden to release “Surfpott,” where the customer can roll over unused data to future periods. Furthermore, the year ended with the launch of free roaming in the Nordics and Baltics for customers in Sweden. On the fixed service revenue side, there was a record number of new fiber connections and TeliaSonera’s network now exceeds 1.3 million homes passed. The high-speed internet access further boosts subscription intake and ARPU growth within both broadband and TV, while the copper-based telephony services continued to decrease. The enterprise segment remained challenging with high price pressure and TeliaSonera strengthened its offerings to support performance in SME and SoHo (Small office/Home office) with the release of a personal advisor.

Net sales excluding acquisitions and disposals increased 2.0 percent. Net sales in reported currency including acquisitions and disposals increased 2.4 percent to SEK 37,336 million (36,456). The positive effect of acquisitions and disposals was 0.4 percent. Service revenues, excluding acquisitions and disposals, increased 0.3 percent. Mobile service revenues increased 1.5 percent, including billed revenue growth of 1.3 percent, supported by strong consumer sales that more than compensated for the decline in the enterprise segment. Mobile ARPU increased, as did the postpaid subscriptions, however not enough to compensate for the decline in prepaid subscriptions. Fixed service revenues also showed a slightly positive growth of 0.1 percent, fueled by fiber one-time charges but also driven by the growing broadband and TV revenues. The number of broadband and TV subscriptions grew, as did their respective ARPUs.

EBITDA, excluding non-recurring items, decreased 0.3 percent to SEK 14,267 million (14,311) while EBITDA excluding non-recurring items, acquisitions and disposals decreased 0.5 percent. EBITDA experienced a slowdown in the rate of decline but was still burdened by the drop in copper-based telephony services as well as the raised social security expenses for youths, higher pension expenses and increased costs for marketing activities. On the positive side, increased mobile billed revenues as well as fiber one-time charges contributed positively. In addition, the equipment sales increased and the equipment margin improved. The EBITDA margin dropped to 38.2 percent (39.3).

Operating income, excluding non-recurring items, decreased 3.3 percent to SEK 9,797 million (10,130). Non-recurring items reached SEK 514 million and was mainly related to restructuring charges.

CAPEX increased to SEK 6,179 million (4,936). No licenses and frequencies were acquired during the year. The investments were primarily in fiber and 4G in order to increase coverage and increase capacity to be able to handle the customers’ increased data consumption. Investments were also made in transformation, the modernization of TeliaSonera in order to continue the journey towards becoming a New Generation Telco.

© TeliaSonera 2015
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