Other operations

Other operations comprise Telia Carrier, Latvia, Telia Finance, Division X, Telia Company’s shareholding in the associated company Turkcell as well as Group functions. During the year, Sergel and the holding in MegaFon were disposed.

Net sales in local currencies, excluding acquisitions and disposals, decreased 0.1 percent. In reported currency, net sales decreased 40.9 percent to SEK 9,047 million (15,299), mainly due to the disposal of Yoigo in Spain in 2016. The organic decrease was mainly explained by lower service revenues related to voice traffic in Telia Carrier.

Adjusted EBITDA, in local currencies, excluding acquisitions and disposals, increased by 42.2 percent, driven mainly by cost savings related to Group IT, Group Networks and other group functions. For Telia Carrier, adjusted EBITDA in local currencies and excluding acquisitions and disposals increased by 2.5 percent due to a more favourable product mix and lower operating expenses.

Income from associated companies decreased to SEK 769 million (2,815) following capital gains/losses from the disposal of shares in both Turkcell and MegaFon, as well as lower contribution from MegaFon up until the disposal in the fourth quarter.

Adjusted operating income declined to SEK 1,333 million (3,022), mainly due to lower income from associated companies.

CAPEX of SEK 3,202 million (3,442) were mainly related to building and enhancing technology assets, such as IT systems, core network and product platforms managed on group level to benefit several countries.

In Latvia, net sales in reported currency increased 9.2 percent to SEK 1,953 million (1,788). This was driven by increased mobile ARPU coupled with subscription base expansion. Adjusted EBITDA, increased to SEK 609 million (580), as revenue growth more than compensated for a somewhat increased cost level. The adjusted EBITDA margin decreased to 31.2 percent (32.4).

SEK in millions,
except margins, operational data and changes

Jan–Dec
2017

Jan–Dec
2016

Chg

(%)

Net sales

9,047

15,299

-40.9

Change (%) local organic

-0.1

   

of which Telia Carrier

5,956

6,227

-4.3

of which Latvia

1,953

1,788

9.2

of which Spain

6,073

 

Adjusted EBITDA

1,149

1,555

-26.1

of which Telia Carrier

491

498

-1.4

of which Latvia

609

580

5.1

of which Spain

630

 

Margin (%)

12.7

10.2

 

Income from associated companies

769

2,815

-72.7

of which Russia

2,700

899

 

of which Turkey

-2,070

1,805

 

of which Latvia

137

121

13.5

Adjusted operating income

1,333

3,022

-55.9

CAPEX

3,202

3,442

-7.0

Subscriptions, (thousands)

     

Mobile Latvia

1,237

1,200

3.1

of which machine to machine (postpaid)

285

242

17.9

Employees

4,012

4,144

-3.2