Strenghtening the B2B proposition

Net sales in reported currency increased 11.8 percent to SEK 10,128 million (9,057). Service revenues increased 2.5 percent in local currency, excluding acquisitions and disposals, mainly due to higher wholesale revenues. Mobile ARPU increased following an improved customer mix as a result of good customer portfolio management. In total, the number of mobile subscriptions increased by 134,000 driven by the acquisition of Phonero.

During the year, Phonero was acquired and consolidated from the second quarter, further strengthening Telia’s presence in the enterprise segment. The impact on net sales and EBITDA from Phonero amounted to SEK 752 million and SEK 103 million, respectively. The acquisition is expected to generate annual cost synergies of around SEK 400 million, mainly from transferring traffic to our own network, however with limited effect in 2017.

The adjusted EBITDA, in local currency, excluding acquisitions and disposals, grew by 6.7 percent, due to a revenue mix shift towards wholesale, together with good cost control.

SEK in millions,
except margins, operational data and changes

Jan–Dec
2017

Jan–Dec
2016

Chg

(%)

Net sales

10,128

9,057

11.8

Change (%) local organic

2.4

   

of which service revenues (external)

8,511

7,516

13.3

change (%) local organic

2.5

   

Adjusted EBITDA

3,520

3,125

12.6

Margin (%)

34.8

34.5

 

change (%) local organic

6.7

   

Adjusted operating income

1,991

1,611

23.6

CAPEX excluding license and spectrum fees

1,074

1,334

-19.5

Subscriptions, (thousands)

     

Mobile

2,345

2,211

6.1

of which machine to machine (postpaid)

65

45

43.9

Employees

1,201

1,033

16.3