Telia Co. Turns To Profit In Q3, Net Sales Down; Backs FY17 Forecast

(RTTNews) - Swedish telecom company Telia Co. AB (0H6X.L, TLSNY.PK) reported Thursday that its third-quarter total net income attributable to the owners of the parent was 2.27 billion Swedish kronor, compared to loss of 8.81 billion kronor a year ago. Earnings per share were 0.52 krona, compared to loss of 2.03 kronor last year.

In September, Telia reached a global settlement with the authorities regarding the Uzbekistan investigations. As part of the settlement, Telia agreed to pay fines and disgorgements in an aggregate amount of $965 million or 7.72 billion kronor at that point in time, whereof $757 million were paid during the third quarter. A provision for the settlement was already recognized in 2016, resulting in the hefty loss.

Adjusted operating income fell 19.6 percent to 3.81 billion kronor from last year's 4.74 billion kronor, negatively impacted by the sale of Turkcell shares.

Adjusted EBITDA decreased 3.6 percent to 6.60 billion kronor. In local currencies, adjusted EBITDA decreased 0.4 percent. The adjusted EBITDA margin rose to 33.6 percent from 31.8 percent a year ago.

Net sales decreased 8.8 percent to 19.63 billion kronor from 21.52 billion kronor last year. Net sales in local currencies, excluding acquisitions and disposals, decreased 0.5 percent.

Service revenues in local currencies, excluding acquisitions and disposals, decreased 0.9 percent.

Further, the company reiterated its outlook for 2017. The company continues to expect adjusted EBITDA in continuing operations in local currencies, excluding acquisitions and disposals, to be around the 2016 level.

Further, the company said its ambition to reduce our cost base, amounting to an expected 38 billion kronor in 2017, by 3 percent, on a net basis in 2018 over 2017, is on track.