1 / 35

Interim report January–March 2004

Interim report January–March 2004. Anders Igel President and CEO . Forward-looking statements.

rpaine
Télécharger la présentation

Interim report January–March 2004

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Interim report January–March 2004 Anders Igel President and CEO

  2. Forward-looking statements Statements made in this document relating to future status or circumstances, including future performance and other trend projections are forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements due to many factors, many of which are outside the control of TeliaSonera.

  3. TeliaSonera January-March 2004 • Net sales amounting to SEK 19,946 million (20,349), were on the same level as the preceding year adjusted for changes in exchange rates • EBITDA excl. non-recurring items decreased to SEK 7,200 million (7,562) • Free cash flow amounted to SEK 2,194 million (3,897), negatively affected by tax payments for the previous year • Operating income increased to SEK 4,122 million (3,288) • Net income increased to SEK 2,344 million (1,639) and earnings per share to SEK 0.50 (0.35)

  4. Good performance despite tough competition in home market • Declining market trends turned around in Sweden • Accelerating initiatives to reach competitive cost levels in all operations • Impressive growth and profitability in Eurasia • Important steps towards simplicity and usage of mobile data • Intranet anywhere: Launch of Telia Connect Pro • 3G launch in Sweden

  5. Strong market initiatives yield strong customer growth Consolidated companies Associated companies 28,900,000 +34% 22,400,000 +8% 20,700,000 21,500,000

  6. Advantages by being a large international group TeliaSonera is more than the sum of its parts • Pan-Nordic service offerings • Homerun • Nordic mobile offering • Exceeded synergies • Executed decisions higher than target so far • Common product development • Best practice benchmarking throughout the group

  7. Rapid GPRS expansion in Nordic markets GPRS subscriptions (thousands) Sweden Finland Norway Denmark 1 1) GPRS included in all mobile subscriptions since Jan 1, 2004

  8. Encouraging early MMS growth Number of MMS (thousands) Sweden Finland Norway Denmark 1 1) Paid MMS started in Dec

  9. Faster, easier and more fun! Improved mobile data services with 3G • The speed of 3G radically improves the customer experience • Range of services will be expanded

  10. Broadband – climbing on all markets Subscriptions (thousands) Sweden Finland Denmark Lithuania

  11. Performance Q1 2004 Mobile Sales, year-on-year +5% Customers, total 4,008,0001 Fixed voice Sales, year-on-year -8% Customers, total 6,248,000 Internet and data Sales, year-on-year +5% Customers, total 1,239,000 Of which broadband 423,000 Market share gains and sustained strong margins in Sweden • Increased market and customer orientation yield results • Gained market shares within mobile services to business customers and within consumer fixed voice • Accelerated initiatives to secure competitive cost levels • 3G launched March 10 1) 135,000 customers added due to a changed policy for termination of prepaid customers

  12. TeliaSonera Sweden – ARPU and MoU ARPU Maintained post-paid ARPU despite lower prices SEK Post-paid Total Prepaid Churn 8% in Q1 2004 Unchanged blended MoU despite strong customer intake and larger portion of prepaid customers MoU minutes Post-paid Total Prepaid

  13. Q4 2003 Q1 2004 Negative trend broken in Sweden fixed +110,000 Telia callers • Positive impact by bundled and flat-rate offers such as: • Favorit • Fritid • Vi Bjuder

  14. Performance Q1 2004 Mobile Sales, year-on-year +2% Customers, total 2,321,000 Fixed voice Sales, year-on-year +8% Customers, total 790,000 Internet and data Sales, year-on-year +14% Customers, total 310,000 Of which broadband 174,000 Increased sales on a tough Finnish market • Increased net sales due to : • Strong broadband growth • Increased sales to mobile service providers • Acquisition of Auria • Increased efforts to regain end-customer market share with maintained profitability • Increased mobile usage, SMS and MMS

  15. TeliaSonera Finland – ARPU and MoU ARPU Quite stable ARPU despite substantial price reductions EUR Churn 37% in Q1 2004 MoU minutes MoU continues to grow

  16. Performance Q1 2004 Mobile Sales, year-on-year -5% in local currency +8% Customers, total 1,190,000 Lower prices reduce total market growth in Norway • Competition still intensive • High subsidises • Lower prices • NetCom continues with offerings and new marketing programs • Initiatives to drive MMS growth • Net sales were negatively affected by exchange rate fluctuations

  17. Norway – Mobile ARPU and MoU ARPU NOK Continued strong increase in usage combined with price reductions gives stable ARPU Post-paid Total Prepaid Churn 19% in Q1 2004 MoU minutes Post-paid Total Prepaid

  18. Performance Q1 2004 Mobile Sales, year-on-year +34% Customers, total 544,000 Fixed voice Sales, year-on-year +13% Customers, total 179,000 Cable Sales, year-on-year +26% Broadband customers, total 113,000 Robust sales and earnings growth in Denmark • Positive growth across all operations after a successful restructuring • Mobile • Telia Xpress – SMS and MMS success • Increased traffic volume per customer • Fixed Voice • Net sales are climbing again • Cable • New attractive offerings and increased transfer speed

  19. Denmark – Mobile MoU Strong customer and MoU growth MoU minutes Post-paid Total Prepaid

  20. Performance Q1 2004 Estonia1: Mobile Fixed Sales, year-on-year +12% +8% Customers, total 502,000 500,0002 Latvia: Mobile Fixed1 Sales, year-on-year +6%-4%3 in local currency +13% Customers, total 554,000 681,0002 Lithuania: Mobile Fixed Sales, year-on-year +9%-10% Customers, total 1,101,000 897,0002 1) Associated company 2) Including Internet 3) Jan–Dec 2003 Strong mobile growth in Baltic countries • Strong mobile growth and reduced customer loss within fixed voice in Lithuania • Strong mobile growth and good earnings in fixed in Latvia • Stable performance in Estonia • Cash offer on Eesti Telekom

  21. Rapidly reduced churn in Lietuvos Telekomas Loss of main lines (thousands) Q3 2002 Q4 2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003 Q1 2004

  22. Performance Q1 2004 Russia – MegaFon Customers, total 7,587,000 Eurasia – Fintur companies Customers, total 2,679,000 Turkey– Turkcell Customers, total 19,600,000 Strong performance in International operations Russia • Over 1.4 million new customers Eurasia • Strong margin improvement and strong customer growth Turkey • Continued strong customer growth • Turkcell’s result impacted by provisions International Carrier • Weak demand for IP and capacity on the market

  23. Cash offer on Eesti Telekom • Owns Estonian operators Elion and EMT TeliaSonera acquisition record: Outlook – Focused growth by acquisitions • Ready to take majority in associated companies • Financial position and merger experience allow us now to participate in European consolidation • Build on or increase strength in the Nordic and Baltic home market • Acquisition requirements • Value enhancing by fulfilling our return requirements • Maintained solid financial position

  24. Outlook 2004 – Commitment to pursue profitable growth • Good growth in mobile, decline in fixed voice and strong growth in Internet based services is expected in the market • Ambition to develop organic revenue growth in line with or better than our markets • Continued adaptation of cost structure to reflect market conditions of different segments in competitive home market • Margins will be positively impacted by continued efficiency improvements and increased volumes, and negatively by lower prices • Free cash flow will remain strong although impacted by higher cash taxes, somewhat increased CAPEX and higher use of the provisions

  25. Focus going forward Main challenge 2004 • Continue to improve market position while maintaining our strong profits and cash flow • Commercial actions – win back market shares • Continued synergy realization • Efficiency improvements • Profitable growth organically and by acquisitions • Realize the vision

  26. Kim Ignatius CFO

  27. TeliaSonera key figures Jan–Mar 2004

  28. Q1 2003 – Q1 2004 Net sales change Sales per market • Net sales were on the same level adjusted for changes in exchange rates • Acquisitions/divestitures positive effect of 1% International Carrier Holding Eurasia • Acquisition of Auria • Wholesale revenue up • MoU increase Restructuring SEK million Baltic countries Denmark Norway Continued strong growth Loss of fixed subscribers and traffic volumes Successful marketing efforts Finland Sweden

  29. Q1 2003 – Q1 2004 Continued reduction of OPEX excl. non-recurring items -1% SEK million • Auria acquisition • Higher interconnection costs • Higher marketing costs High production cost due to revenue growth Restructuring Increased traffic volumes Volume increase • Lower cost due to changed business relation with Eniro • Lower personnel costs • Marketing and consultant costs up due to increased activity level Customer growth in mobile

  30. Q1 2003 – Q1 2004 EBITDA excl. non-recurring items down -5% SEK million • Price erosion • Higher marketing cost • Shift from end customer to wholesale • Centralized HQ functions • Higher internal eliminations Customer growth and higher ARPU in Mobile Drop in net sales partly compensated by lower OPEX • Price erosion • Higher interconnect costs Higher sales and economies of scale

  31. Q1 2003 – Q1 2004 Operating income excl. non-recurring items • Lower depreciation in Sweden • Growth and improved profitability in Russia • Provision for legal disputes and deferred tax asset booked in Turkcell. Growth and improved profitability excluding one offs. • Improved profitability for associates in Holding SEK million

  32. Further initiatives keep synergies ahead of schedule • Decided synergies yearly run rate by the end of 2005 • OPEX SEK 1,868 million • CAPEX SEK 460 million • Realized synergies 2003 • OPEX SEK 882 million • CAPEX SEK 481 million • Realized synergies Q1 2004 • OPEX SEK 268 million • CAPEX SEK 105 million • Committed to merger target • Total annual pre-tax cash flow synergies post 2005 estimated to be approx. SEK 2.7 billion (EUR 300 million)

  33. Non core assets • Successful divestment of Telia Finans generated a capital gain of SEK 429 million and positive cash flow of SEK 6,000 million. Several smaller divestments were done as well. • Yahoo exercised its option to sell back its 16% stake in ZED to TeliaSonera. Purchase price EUR 7 million. • Vodafone’s shares in Xfera acquired for EUR 9 million. Capital infusion to Xfera of EUR 3 million • Sergel Kredittjänster AB and TeliaSonera Payphone AB transferred from Holding to TeliaSonera Sweden

  34. Financial position further strengthened • Free cash flow of SEK 2.2 billion, negatively affected by tax payments for the previous year • Divestment of Telia Finans reduced net debt by SEK 6.0 billion • Sustain a high level of financial flexibility with focus on long-term liquidity position • Scheduled debt repayments SEK 3.4 billion in 2004 and SEK 11.7 billion in 2005 SEK billion

  35. The Nordic and Baltic telecommunications leader

More Related