Telia Co. Turns To Profit In Q2, Backs FY18 View; Buys Bonnier Broadcasting

Swedish telecom company Telia Co. (0H6X.L,TLSNY.PK) reported Friday that its second-quarter net income attributable to shareholders was 2.16 billion Swedish kronor, compared to loss of 291 million kronor.

Earnings per share were 0.50 krona, compared to loss of 0.07 krona a year ago.

Net income from continuing operations climbed 107% to 2.68 billion kronor or 0.61 krona per share.

Adjusted EBITDA rose rose 6.9 percent to 6.44 billion kronor, and adjusted EBITDA margin increased to 31.0 percent from 30.5 percent last year.

Net sales rose 5.2 percent to 20.81 billion kronor from last year’s 19.79 billion kronor. Net sales in local currencies, excluding acquisitions and disposals increased 1.3 percent..

Service revenues in local currencies fell 2.3 percent.

Looking ahead, for fiscal 2018, the company reiterated outlook that the adjusted EBITDA, in local currency, would be in line or slightly above the 2017 level. The outlook for operational free cash flow being above 9.7 billion kronor is also left unchanged.

Separately, Telia said it acquired Bonnier Broadcasting, including brands TV4, C More and Finnish MTV, from Bonnier AB for 9.2 billion kronor on a cash and debt free basis.

The acquisition will combine Telia Company’s leading mobile and fixed network with one of the most successful commercial media-houses in the Nordics.

The acquisition of Bonnier Broadcasting will not affect Telia´s share buy-back program or dividend policy. The acquisition is expected to generate synergies as per 2020 with a full run rate of SEK 600 million in 2022.

The transaction is subject to regulatory approvals and is expected to be completed during the second half of 2019.

by RTTNews Staff Writer

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