TeliaSonera offsets revenue decline with cost cutting measures
Swedish-Finnish operator group TeliaSonera has suffered a slight decline in revenue for 3Q13. However, this was offset by cost cutting measures which saw the firm decrease its cost base by 3.9 per cent.
As a result, although net sales fell by 1.8 per cent year on year to SEK25.4bn ($ 3.97bn), profit rose to 15.1 per cent to SEK 4.64bn, up from SEK4.03bn in 3Q12.
President and CEO Johan Dennelind explained that the firm’s revenue continued to be impacted by a difficult economic environment and lower regulated mobile termination rates in the markets where it operates.
“Demand for mobile data remains strong and our new data-centric pricing models continue to gain traction across Scandinavia,” he added. “It is particularly encouraging to report positive billed revenue growth in all three markets where these price plans have been introduced, reinforcing our view that we are on the right track.”
Dennelind added that the rapid development of the telecoms industry means that legacy technologies and business models are being replaced with new ones, and that the operator is expanding high speed internet via fibre and 4G services.
“Our ambition is to offer the best customer experience through high-quality networks and it is vital for our investment decisions that we can rely upon a transparent and predictable regulatory framework,” he said.
Dennelind, who took on the role of CEO in September, replaced Lars Nyberg, who stepped down from his role in February this year amid a corruption scandal surrounding the firm’s operations in Uzbekistan.
He said his initial observation is that TeliaSonera has a “solid asset base with a diversified product portfolio, attractive footprint, strong brands and competent people”.
“The mix of mature and emerging markets give us a robust foundation. However, in recent years our position has weakened in too many of our markets and it is essential to strengthen our competitiveness going forward. In a fast changing environment we have to understand our customers’ requirements and further develop a company culture that encourages agility and innovation.”