Economy. Telia’s profit rises, but basically just a result of the continued cost-cutting. The value of the operations in the former Soviet states are written down by a further one billion kronor.
The profit for the second quarter rose 37 percent to 3.7 billion, but sales lying still.
MDJohan He Lind points out that the profitability increased in seven of eight countries, except Denmark.
– Looking at the first half, it goes very well , profitable growth is the seven percent quarter is then slightly lower, 4.5 percent, he said.
No growth
the challenge is to find growth, something neither Telia or industry for present.
– Do not have growth, you need to work on cost reductions, we see the effects of, say He Lind.
– Our big challenge , throughout our industry’s major challenge is to find growth in the core business. It requires investment and we do of course, we invest nearly 15 billion this year, he said.
Sales in Sweden was almost steady during the quarter, the underlying profit as well. Over a few years, he is Lind’s assessment that Telia has taken market share from competitors, overall.
Severe Sold
The sale of the controversial operations in the East, Eurasia, has not yet come to any trades .
– It remains our ambition to sell before the end of the year. But it is not an easy process, says He Lind.
Currently, Telia has been forced to write-downs of the value of the assets of tens of billions, in the quarter made further writedowns of operations in Eurasia, totaling about one billion. Above all, the assets of Uzbekistan is written down by 550 million in the second quarter. Overall values TeliaSonera Uzbek movement, considered most difficult to sell, to present 3.3 billion. Telia is awaiting the legal processes before the Uzbek company can be sold. There are stakeholders, as He Lind.
But Telia also in the quarter wrote down the value of the operations in Afghanistan and Tajikistan with a total of 450 million kronor, according to the report.
In addition to the cost of impairment is also the operations themselves inferior. Market conditions have become tougher, according to Telia manager.
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