Other operations – development in 2016

Other operations include the international carrier operations, customer financing and dunning operations, Telia Company Holding, Telia Company’s shareholding in the associates Russian MegaFon and Turkish Turkcell as well as Group functions.

SHARE OF GROUP TOTAL, CONTINUING OPERATIONS (%)


 

SEK in millions,
except margins, operational data and changes

2016

2015

Change (%)

Net sales

7,468

7,753

-3.7

Change (%) local organic

-3.0

   

of which Telia Carrier

6,227

6,631

-6.1

EBITDA
excl. non-recurring items

345

430

-19.8

of which Telia Carrier

498

401

24.3

Margin (%)

4.6

5.5

 

Income from associated companies and joint ventures

2,695

3,295

-18.2

of which Russia

899

1,413

-36.4

of which Turkey

1,805

1,894

-4.7

Operating income
excl. non-recurring items

2,335

3,141

-25.7

Operating income

2,201

2,948

-25.3

CAPEX

2,905

2,593

12.0

Employees, period-end

3,217

3,301

-2.5

Additional (unaudited) segment information available at www.teliacompany.com.

Net sales in local currencies and excluding acquisitions and disposals decreased 3.0 percent. In reported currency, net sales decreased 3.7 percent to SEK 7,468 million (7,753). The decrease was mainly explained by lower service revenues related to voice traffic in Telia Carrier.

EBITDA, excluding non-recurring items, decreased to SEK 345 million (430) due to higher pension and variable pay expenses as well as costs related to Division X. For Telia Carrier, EBITDA increased by 24.3 percent due to a more favourable product mix and lower operating expenses.

Income from associated companies decreased to SEK 2,695 million (3,295) due to lower contribution from MegaFon and Turkcell.

Operating income declined to SEK 2,201 million (2,948), mainly due to lower income from associated companies.

CAPEX of SEK 2,905 million (2,593) 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.