Telia Company’s operating model is based on geographical areas. The group’s operations are managed and reported by the two operating segments; region Sweden and region Europe. The regions are country-based organizations and the head of each region reports directly to the CEO. Other operations are collectively reported. The former segment region Eurasia is classified as held for sale and discontinued operations since December 31, 2015, and is therefore not included in the segment information. The Sergel companies (Sergel) are included in continuing operations but classified as assets held for sale since June 30, 2016. See Note C34 “Discontinued operations and assets classified as held for sale” for more information.

  • Region Sweden comprises Telia Company’s mobile, broadband, TV and fixed-line operations in Sweden.
  • Region Europe comprises Telia Company’s mobile, broadband, TV and fixed-line operations in Finland, Norway, Denmark, Lithuania, Latvia, and Estonia. Spain was part of the reportable segment region Europe up until the deal was closed on October 5, 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.

Segment information is based on the same accounting principles as for the group as a whole. Inter-segment transactions are based on commercial terms. Besides Net sales and Operating income, principal segment control and reporting concepts are EBITDA excluding non-recurring items, Investments in associated companies and joint ventures, Other operating segment assets and Operating segment liabilities, respectively (see Definitions).

Operating segment assets comprise total assets less non-operating interest-bearing receivables, long term and short term investments, pension obligation assets, foreign currency derivatives, accrued interest, tax assets and cash and cash equivalents. Operating segment liabilities contain total liabilities less non-operating interest-bearing liabilities, provisions for pensions and employment contracts, foreign currency derivatives, accrued interest and tax liabilities. For information on distribution of goodwill by reportable segments, see Note C12 “Goodwill and other intangible assets.”

Telia Company will have a revised organizational setup as of January 1, 2017. Based on the new operating model Telia Company will report the following six operating segments separately from 2017: Sweden, Finland, Norway, Denmark, Lithuania and Estonia. Other operations will include Latvia, the international carrier operations, Telia Company’s shareholding in the associates Russia MegaFon and Turkish Turkcell as well as Group functions.

SEK in millions

January–December 2016 or December 31, 2016

Sweden

Europe

Other

Discontinued
operations
and assets
and liabilities
held for sale

Eliminations

Group

Net sales

37,251

41,746

7,468

-2,287

84,178

External net sales

36,938

41,350

5,891

84,178

EBITDA excluding non-recurring items

14,455

11,036

345

25,836

Non-recurring items

-209

4,321

-134

3,977

Amortization, depreciation and impairment losses

-4,887

-5,943

-705

-11,534

of which impairment losses

Income from associated companies and joint ventures

1

115

2,695

2,810

Operating income

9,360

9,529

2,201

21,090

Financial items, net

         

-1,841

Income taxes

         

-2,816

Net income from continuing operations

         

16,433

Investments in associated companies and joint ventures

6

806

21,887

22,698

Other operating segment assets

46,151

95,949

11,791

-1,849

152,042

Current and deferred tax assets

         

4,994

Other unallocated assets

         

44,653

Assets classified as held for sale

     

29,042

 

29,042

Total assets

         

253,430

Operating segment liabilities

11,304

8,294

20,937

-1,855

38,680

Current and deferred tax liabilities

         

10,586

Other unallocated liabilities

         

95,668

Liabilities directly associated with assets classified as held for sale

13,627

13,627

Total non-current and current liabilities

         

158,560

Investments, continuing operations

7,224

5,867

3,016

16,108

of which CAPEX, continuing operations

7,119

5,602

2,905

-1

15,625

Number of employees

6,720

11,093

3,217

4,987

26,017

SEK in millions

January–December 2015 or December 31, 2015

Sweden

Europe

Other

Discontinued
operations
and assets
and liabilities
held for sale

Eliminations

Group

Net sales

37,336

43,658

7,753

-2,249

86,498

External net sales

37,051

43,238

6,210

86,498

EBITDA excluding non-recurring items

14,267

10,584

430

25,281

Non-recurring items

-495

-601

-194

-1,289

Amortization, depreciation and impairment losses

-4,468

-7,728

-583

-12,780

of which impairment losses

0

-1,917

-3

-1,920

Income from associated companies and joint ventures

-20

119

3,295

3,394

Operating income

9,284

2,375

2,948

14,606

Financial items, net

         

-2,917

Income taxes

         

-2,157

Net income from continuing operations

         

9,532

Investments in associated companies and joint ventures

5

783

22,553

23,341

Other operating segment assets

42,510

95,235

11,206

-1,859

147,092

Current and deferred tax assets

         

5,123

Other unallocated assets

         

42,649

Assets classified as held for sale

35,812

35,812

Total assets

         

254,017

Operating segment liabilities

11,123

11,626

5,692

-1,868

26,573

Current and deferred tax liabilities

         

10,712

Other unallocated liabilities

         

102,933

Liabilities directly associated with assets classified as held for sale

11,598

11,598

Total non-current and current liabilities

         

151,816

Investments, continuing operations

6,337

10,441

3,634

20,413

of which CAPEX, continuing operations

6,179

5,823

2,593

0

14,595

Number of employees

6,718

11,323

3,301

5,553

26,895