Stable development despite a challenging market

Net sales in reported currency increased 1.1 percent to SEK 5,945 million (5,880). Service revenues decreased 0.3 percent in local currency, excluding acquisitions and disposals. Mobile service revenues increased 0.9 percent driven by ARPU growth, which mitigated the decline in the subscription base, where the main reason was the discontinuation of the prepaid offering. Fixed service revenues declined 4.7 percent from pressure on fixed telephony and broadband revenues, slightly mitigated by positive development in TV revenues.

The number of mobile subscriptions decreased by 127,000 during the year, mainly driven by the the discontinuation of prepaid subscriptions. Fixed telephony subscriptions decreased by 11,000 and broadband subscriptions by 14,000, while TV subscriptions grew by 3,000.

The adjusted external operating expenses in local currency, excluding acquisitions and disposals, were reduced during the year by 1.4 percent. This did however not fully mitigate the pressure on revenues, but adjusted EBITDA, was almost flat at SEK 691 million (692). The adjusted EBITDA margin declined slightly to 11.6 percent (11.8).

SEK in millions,
except margins, operational data and changes

Jan–Dec
2017

Jan–Dec
2016

Chg

(%)

Net sales

5,945

5,880

1.1

Change (%) local organic

-0.7

   

of which service revenues (external)

4,335

4,270

1.5

change (%) local organic

-0.3

   

Adjusted EBITDA

691

692

-0.2

Margin (%)

11.6

11.8

 

change (%) local organic

-2.0

   

Adjusted operating income

-65

-58

 

CAPEX excluding license and spectrum fees

428

437

-2.1

Subscriptions, (thousands)

     

Mobile

1,479

1,606

-7.9

of which machine to machine (postpaid)

49

42

18.2

Fixed telephony

90

101

-10.9

Broadband

114

128

-10.9

TV

31

28

10.7

Employees

1,026

1,070

-4.1