7/28/2008

TeliaSonera makes 685 million USD profit with the advantage of Turkey

Bloomberg - TeliaSonera AB, Sweden's largest telephone company, announced second-quarter profit gained 7.8 percent as growth in Turkey and Russia, helped make up for sluggish demand in the Nordic region. Chief Executive Officer Lars Nyberg, aims to lower the company's cost base by 5 billion kronor annually from the 2007 level. TeliaSonera booked 592 million kronor of one-time costs in the second quarter, mainly for the restructuring in Sweden and Finland. TeliaSonera acquired shares of the Turkcell in Turkey and MegaFon in Russia. As a result of this initiative, sales from the region TeliaSonera calls Eurasia gained 17 percent to 2.86 billion kronor, and growth in affiliates in Turkey and Russia also fueled earnings. Turkcell's contribution jumped to 1.03 billion kronor from 602 million kronor, while earnings from Russia increased 14 percent to 1.34 billion kronor. Earnings were also supported by higher sales and customer intake at the company's mobile services unit. Revenue at the business gained 6.8 percent to 12.07 billion kronor, led by Spain and Sweden. TeliaSonera added 1.4 million new wireless clients in the quarter at majority owned units and 2.2 million customers at associated companies, bringing the total to almost 123 million.

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