TeliaSonera cuts Spanish sales forecast
TeliaSonera has reportedly cut its sales outlook in Spain for the rest of the year, citing lower revenues in the country.
Market watchers claim this is the clearest signal yet that the Nordic operator is looking to exit the Spanish market entirely; given that its Spanish subsidiary, Yoigo, owns just 7% of the market.
“Competition is fierce, forced by a strong convergence trend that puts pressure on our mobile-only business,” said Johan Dennelind, CEO at TeliaSonera.
“Consequently, we are reviewing our future presence in the Spanish market.”
The company said it sees 2014 sales slightly lower than the 2013 level thanks to a drop in revenues in Spain, and has repeated its forecast of EBITDA margins for 2013; with a capex at approximately 15% of sales.
Despite its potential abandoning of the Spanish market, Reuters said today that the company is eyeing another European market.
Dennelind reportedly said that the company getting to sustainable levels in Denmark on its own remains a question mark, and it is keen to look at options in Denmark.
In 2012, TeliaSonera put Yoigo up for sale, expecting to reach approximately €1 billion for the company, but just under a year later the company halted plans to do so, after bidders failed to meet the company’s valuation.