TeliaSonera delivers results for the fourth quarter of 2015, landing just above expectations.
On the Stockholm Stock Exchange, the market responds positively and raises the share to 3.3 per cent after the Friday opening.
The result before depreciation, EBITDA, excluding non-recurring items was 6.556 billion crowns. Analysts’ expectations were at an underlying EBITDA of 6.367 billion crowns.
EBITDA margin was to 28.9 percent, which was slightly better than expected 28.5 percent, according to SME Direkt.
The company also reported an adjusted EBITDA of SEK 25.3 billion, compared to the expected 25.7 billion crowns.
Note that EBITDA in the SME forecast is in local currency and are therefore not fully comparable with TeliaSonera’s forecast.
Net sales were 22.655 billion crowns, which can be compared to the expected 22.329 billion.
– There is a strong and good quarter. A good ending to an otherwise pretty tough year, says TeliaSonera’s CEO Johan He Lind to TT after the presentation of the financial statements.
As TeliaSonera announced previously reported region of Eurasia as a discontinued operation in the wake of corruption investigations and risk for multimillion fines. The ambition is to have left seven countries in 2016.
The business improved in Sweden where service revenues grew organically by 2.5 percent. In Europe market service revenues organically by 1 percent. At the same time, the EBITDA result for both regions, compared with the previous year.
– It is particularly gratifying to see that Sweden is running at 2.5 percent growth for the service service and ten percent of operating profit. This is the highest rate in a long time, says the CEO.
The Board proposes a dividend of SEK 3 per share for 2015, just as expected. Total share telephone company released 13 billion to shareholders, which is as much as last year.
TeliaSonera has also changed its dividend policy to adapt to a future without the strong cash flow from Eurasia. The Company intends to distribute at least 80 percent of free cash flow is based on the Group structure, pro forma excluding region of Eurasia.
To not will be too uncertain is the ambition of the company for the financial year 2016 , with payment in 2017, will distribute at least 2 per share. It was expected that a dividend of SEK 2:34 per share. The dividend shall be divided into two equal parts and paid in the second and fourth quarters.
– It’s a year during the conversion and there are many parameters, so we put two crowns as a floor. But it is in line with expectations that seem to be out there also, He says Lind.
For 2016 purposes the company to maintain EBITDA. The target refers recurring items in local currencies, excluding acquisitions and divestitures in continuing operations.
TeliaSonera believes that investment, capex in continuing operations excluding license and spectrum expected to be 14-15 billion. Analysts had expected 13.2 billion in investments in 2016.
“We expect great activity in 2016, largely due to a faster fiber rollout in Sweden. In addition, we to increase the pace of our action in the transformation, mainly for old IT systems and products, which is necessary to reduce costs and improve competitiveness in the long term “, justifies TeliaSonera’s CEO Johan He Lind in the report.
After tours in Eurasia want to TeliaSonera’s capital structure will continue to target a solid investment grade long-term (A- to BBB +).
TeliaSonera aims , also due to a gearing corresponding dimension net debt in relation to EBITDA of 1.5-2.5 times.