Telia Interim Report January-September 2000

Telia Interim Report January-September 2000 The Group's net sales increased 6%, with an increase of 15% during the third quarter. Strong sales in growth areas: Mobile telephony +38%, Network wholesal- ing, Sweden +66%, International Carrier +27%, Internet +15%. Operating income totaled MSEK 4,076, and underlying EBITDA was MSEK 9,297. Substantial investments were made during the period. Eniro listed on the stock exchange in October. Review of Group Earnings Jul- Jul- Jan- Jan- Full MSEK Sep Sep Sep Sep Year 2000 1999 2000 1999 1999 Net sales 13,487 11,771 39,524 37,234 52,121 Sales growth (%) 14.6 -0.8 6.2 4.3 5.1 Underlying EBITDA 3,180 3,466 9,297 10,716 14,059 Underlying EBITDA margin (%) 23.6 29.4 23.5 28.8 27.0 Operating income 206 1,150 4,076 3,441 5,946 Income after financial net 267 1,244 4,059 3,535 5,980 Net income 172 869 2,870 2,467 4,222 Earnings per share (SEK) 0.06 0.30 0.99 0.87 1.48 Return on equity (%) 12.1 11.6 12.1 11.6 14.2 Investments 16,745 2,121 37,431 7,233 12,145 of which shares and partici- 1,919 404 5,184 2,113 4,109 pations Summary The Telia Group reported strong sales growth in its high-priority areas. A sharp rise in the number of GSM customers in Sweden, Denmark and Finland and the acquisition of the Norwegian mobile operator NetCom ASA boosted sales growth in the mobile business and secured Telia's position on the Nordic market. Successful cultivation of the international carrier market has led to greatly increased traffic volumes in Telia's fiber-optic network, The Vi- king Network, under construction in Europe and USA. The Group's total net sales climbed during the nine-month period by 6.2% to MSEK 39,524. The increase in the third quarter was 14.6%. The rate cuts in fixed telephony aimed at increasing Telia's competitive capacity in the Swedish retail market have mainly been compensated through efficiency measures, increased sales of premium services as well as sales of traffic and network capacity to external operators and service provid- ers in Sweden. Underlying EBITDA declined by 13% to MSEK 9,297 due to substantial invest- ments to secure the Group's future earnings growth. The decline in the third quarter was 8%. Operating income rose from MSEK 3,441 to MSEK 4,076, of which MSEK 1,569 consists of capital gains and other one-off charges. The directory company Eniro was successfully listed in October as a part of the refine and focus strategy. The level of investment has risen chiefly through the strategic acquisi- tion of NetCom and the expansion of the international carrier network. Sales The Group's net sales rose by 14.6% during the third quarter compared to the third quarter of 1999. The increase was 8.4% for comparable units. For the nine-month period ended September 30, these items increased 6.2% and 4.8% respectively. Growth is primarily driven by greatly increased sales in mobile telephony, as well as robust growth in demand for the international carrier and Swed- ish network wholesale businesses. Adjusting for price cuts made, Telia reported an 11% increase in sales during the period. 1) Net Sales per Business Area and Product Segment Jan- Jan- Full SepCh Sep Year 2000 g 1999 1999 MSEK % MSEK MSEK Mobile Mobile te- 7,88 37 5,71 7,97 lephony 1 .9 7 1 Other 58420 484 685 .7 8,46 36 6,20 8,65 5 .5 1 6 Carrier & Networks Skanova 2,28 66 1,37 2,19 2 .0 5 1 Interna- 1,93 26 1,52 2,13 tional 5 .6 8 7 Carrier 4,21 45 2,90 4,32 7 .3 3 8 Busi- ness/Peopl e Solu- tions Fixed te- 15,5 -17,4 23,1 lephony 6411 83 15 .0 Leased 1,18 4. 1,13 1,56 lines 8 4 8 0 Data com- 1,34 -1,52 2,02 munica- 911 9 0 tions .8 Internet 1,05 15 9181,25 7 .1 5 Other 1,67 1. 1,65 2,38 2 0 5 4 20,8 -22,7 30,3 308. 23 34 3 Enter- 5,91 10 5,37 8,77 prises 9 .0 9 8 Group-wide 93 .. 28 25 Total 39,5 6. 37,2 52,1 24 2 34 21 1) For further information: www.telia.com, Investor Relations, Sales by Business Area and Product Segment (detailed information). ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/11/09/20001109BIT00040/bit0001.doc The full report http://www.bit.se/bitonline/2000/11/09/20001109BIT00040/bit0002.pdf The full report