TeliaSonera cuts financial outlook for 2012
18 July 2012 | Kavit Majithia
TeliaSonera has cut its financial outlook for 2012 after posting lower core profits than expected in Q2.
TeliaSonera’s earnings before EBITDA were reported at 9 billion Swedish crowns, just behind figures of 9.2 billion Swedish crowns reported at the same time last year.
“Based on the results for the first six months, we revised our outlook for 2012 and expected revenues in local currencies to be more or less unchanged and the EBITDA margin to be slightly lower compared to last year,” said a company statement.
Operators, particularly in Europe, have been struggling to monetise over-the-top, bandwidth dependant data services that are in high demand by consumers.
There is an increasing trend in the European market to begin sharing networks with other operators to cope with data traffic but it is unknown whether the Nordic operator will adopt this strategy to boost results. It is thought TeliaSonera is also beginning to struggle with the increasing decline in voice calls
Reuters reports that TeliaSonera widely expected its net sales to remain similar to last year. There are continuing rumours that the company is in the market to divest its Spanish unit Yoigo, which could be worth as much as €1 billion.