INTERIM REPORT
JANUARY - JUNE 2016
Q2
JOHAN DENNELIND,
PRESIDENT & CEO
SOLID Q2 - STRONG FIRST HALF
Q2 2016 H1 2016
S E R V I C E R E V E N U E G R O W T HReported -1.2%
Organic -0.2%
Reported -0.9%
Organic -0.6%
E B I T D A * G R O W T H F R E E C A S H F L O WReported +4.1%
Organic +5.1%
SEK 1.8 billion
Reported +7.1%
Organic +7.6%
SEK 3.9 billion
*Excluding non-recurring items Continuing operations
2
CONTINUED EBITDA GROWTH - REVENUES STABLE
SERVICE REVENUES
Organic growth, external service revenues
Sweden
EBITDA
Organic growth, excluding non-recurring items
Continuing
Europe
Continuing operations
+0.9%
Sweden
2.0%
Europe
7.4%
operations
5.1%
-0.2%
-0.2%
Q2 15 | Q3 15 | Q4 15 | Q1 16 | Q2 16 | Q2 | Q2 | Q2 | Q2 | Q2 | Q2 |
15 | 16 | 15 | 16 | 15 | 16 |
Region Europe supported by growing mobile service revenues in almost all markets
Sweden impacted by lower fixed telephony revenues and pressure in B2B large segment
Lower EBITDA growth in Sweden, mainly due to less favourable y-o-y comparable
EBITDA growth in 6 of 7 markets in region Europe supported by mobile service revenue growth and cost control
3
MIXED REVENUE DEVELOPMENT IN SWEDEN
SERVICE REVENUES BY SEGMENT
Organic growth, external service revenues
Incl. fiber installation revenues Excl. fiber installation revenues
TELIA FIBER HOUSEHOLDS
Telia passed, not connected Communication operator
Telia connected (MDUs + SDUs)
B2C
+4.0%
1.2 million
1.4 million
+1.6%
Q2 15 Q2 16
B2B
-5.0%
Q2 15 Q3 15 Q4 15 Q1 16 Q2 16
B2C segment supported by revenue growth in broadband, TV and fiber installations
Still pressure in B2B despite positive development in SME/SoHo
42,000 new connections in Q2 of which around 50 percent SDUs
SDUs passed now exceeds 550,000 of which close to 50 percent are connected
4
Service revenues
Q2 16
Positive growth trend in B2C mobile ARPU
offset by pressure in B2B
Price increases support TV ARPU
Broadband ARPU increase mainly driven by speed migration
Q2 15 Q2 16
Q2 15 Q2 16
10 Mbit
100 Mbit or >
DSL Fiber60 Mbit
30 Mbit
10 Mbit
Q2
16
Q2 Q2
16 15
15
16
VALUE LOADING IN SWEDEN
B2C PRODUCT MONETIZATION
% of total subscription base
TOTAL ARPU DEVELOPMENT
Growth y-o-y, B2C and B2B
Mobile TVMobile
Fixed broadband
TV
13.3%
Large
12 GB or >
Other
Mid
Start & other
1.3%
2.5%
Q2 15 Q2 16
Q2 15 Q2 16
base base base base
Q2
15
Q2 Q2
base base base base
5
HIGHER EARNINGS IN FINLAND
SERVICE REVENUES* & EBITDA**
SEK million, reported currency
MOBILE SERVICE REVENUES*
Organic growth
-0.8%
2,769
2,739
Mobile billed service revenues
Total mobile service revenues
3.8%
+1.9%
0.8%
978
987
Q2 15 Q3 15 Q4 15 Q1 16 Q2 16
Q2 15
Q2 15 Q2 16
EBITDA
Lower interconnect and fixed broadband
revenues behind revenue decline
Growth in mobile billed service revenues and cost control contribute to EBITDA growth
Price increases and good data monetization
in B2C support mobile billed service revenues
Network quality stabilized
6
= Organic growth
* External service revenues **Excluding non-recurring items
SOLID PERFORMANCE IN NORWAY
SERVICE REVENUES* & EBITDA**
SEK million, reported currency
MOBILE SERVICE REVENUES*
Organic growth
-0.4%
1,978
1,807
Mobile billed service revenues
Total mobile service revenues
3.8%
+5.0%
1.3%
731
705
Q2 15 Q3 15 Q4 15 Q1 16 Q2 16
Q2 15
Q2 15 Q2 16
EBITDA
Positive growth in mobile billed service revenues
was offset by lower interconnect revenues
Improved SARC spend and overall good cost control behind EBITDA improvement
Higher mobile billed service revenues
following successful upsell activities
Telia awarded best 4G network in Norway's biggest independent test
7
= Organic growth
* External service revenues **Excluding non-recurring items
Q2 16
Service revenues
EARNINGS GROWTH IN THE BALTICS
SERVICE REVENUES*
Organic growth
+4.6%
+0.5%
-3.2%
EBITDA**
SEK million
+3.6%
195205
+13.9%
281
247
+0.8%
134 135
Q2 15 Q3 15 Q4 15 Q1 16 Q2 16
Estonia Lithuania Latvia
Q2 15 Q2 16
Estonia
Q2 15 Q2 16
Lithuania
Q2 15 Q2 16
Latvia
Growing demand for mobile data partly offset by lower roaming revenues
Challenging B2B segment in Latvia
Service revenue growth and cost control in Estonia and Lithuania behind improved EBITDA
* External service revenues = Organic growth ** Excluding non-recurring items
8
Telia Company AB published this content on 21 October 2016 and is solely responsible for the information contained herein.
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