Telia's Interim Report January-March 2001

Telia's Interim Report January-March 2001 ·Improved margins in mobile telephony operations ·Increased rate of delivery for broadband. Com hem strengthens the broadband initiative ·The Group's net sales increased by 5.7 percent to MSEK 13,592 ·Underlying EBITDA grew by 2.7 percent to MSEK 3,348 ·Operating income was MSEK 811 (3,382), earnings in 2000 affected by extensive capital gains ·Mobile operator Tess divested with an estimated capital gain of GSEK 2.7 in the second quarter President and CEO Marianne Nivert commented on Telia's first quarter report as follows: " I am pleased with the Group as a whole. We have succeeded in improving earnings during the quarter despite the fact that the comparison period of last year was a very good quarter. This bodes well for the rest of the year. I am, however, less pleased with the sales growth. Six percent is too low, even though there are reasons for this. The initiatives we are currently working on have not yet had an impact, and we are still affected by the lingering effects of rate cuts in 2000." "Looking at the individual business areas, Telia Mobile had healthy growth overall, 46 percent. However, the reduced interconnect fees determined by PTS had a significant effect on sales growth in Sweden, which was 7 percent during the quarter. Despite the price reductions, earnings in mobile services showed great improvement, which is very pleasing." "Internet and broadband growth was strong during the quarter. Telia Internet Services' sales climbed by 25 percent. Broadband deliveries took off during the year and we can now start working on our backlog and begin marketing our services more aggressively. com hem becoming a part of our core business also strengthens the broadband initiative." "Major initiatives are also underway within Telia International Carrier, which will burden the Group's earnings in the short term. The first quarter was characterised by instability in the industry, which affected both earnings and sales." "In the fixed network business, Telia Networks, we have maintained the margins, despite tough competition and we also see that the wholesale operations have continued their positive growth." For further information please contact: Telia's Press Office, phone +46 8 713 58 30. Telia Interim Report January-March 2001 Telia ab (publ), 123 86 Farsta, Sweden, Corporate Reg. No. 556103-4249, Registered office: Stockholm Telia January-March 2001 aImproved margins in mobile telephony operations aIncreased rate of delivery for broadband. Com hem strengthens the broadband initiative aThe Group's net sales increased by 5.7 percent to msek 13,592 aUnderlying ebitda grew by 2.7 percent to msek 3,348 aOperating income was msek 811 (3,382), earnings in 2000 affected by extensive capital gains aMobile operator Tess divested with an estimated capital gain of gsek 2.7 in the second quarter Review of Group Earnings Jan- Jan- Full msek Mar Mar year 2001 2000 2000 Net sales 13,592 12,857 54,064 Change in net sales (%) 5.7 3.7 3.7 Underlying ebitda 3,348 3,260 13,087 Underlying ebitda margin (%) 24.6 25.4 24.2 Operating income 811 3,382 12,006 Income after financial items 502 3,436 11,717 Net income 291 2,390 10,278 Earnings per share (sek) 0.10 0.84 3.50 Return on equity (%) - - 23.9 Investments 3,659 4,644 47,742 of which goodwill, shares and 91 2,459 31,162 participations ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/05/10/20010510BIT00540/bit0002.doc The full report http://www.bit.se/bitonline/2001/05/10/20010510BIT00540/bit0002.pdf The full report