Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on TELIASONERA AB. We currently have 5 research reports from 1 professional analysts.
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Telia refocus on the Nordics
21 Oct 16
Q3 revenues in local currencies were perfectly in line with expectations: they have declined by 1.2% yoy, exactly as in H1. Note the whole segment region of Eurasia is reported as discontinued operations, as in H1 (the group having announced in September 2015 an orderly retreat from all its operations in this region to refocus on Europe), but Spain (9% of revenues) was still in the accounts despite the announcement of its sale to Masmovil at the end of June. However, EBITDA has decreased by 1.6% yoy at constant change, a poor performance compared to the 5% and 10% growth recorded in Q2 and Q1, but Telia had previously announced that H2 would be tougher than H1 especially in Sweden (which now represents more than 40% of Telia’s activities). In H1, the Swedish EBITDA increase was partly due to one-off fibre installation charges. The current performance in Sweden remains characterised by stable growth in the consumer segment, but pressure in parts of the enterprise area with significant price pressure in the large enterprise and public segments. The outlook for 2016 (to generate an EBITDA in line or slightly above the level in 2015) is, however, unchanged. Last but not least, Q3 was severely impacted by a SEK12.5bn provision related to the US and Dutch authorities settlement proposal, announced in September, as a consequence of Telia’s entry into and operations in Uzbekistan.
Sweden should represent 50% of revenues after the sale of Yoïgo
20 Jul 16
Q2 revenues in local currencies were perfectly in line with expectations: they have declined by 1% yoy, exactly as in Q1. Note all the segment region Eurasia is reported as discontinued operations as in the previous quarter (the group having announced in September 2015 an orderly retreat from all its operations in this region to refocus on Europe), but Spain (9% of revenues) was still in the accounts despite the announcement of its sale to Masmovil at the end of June. EBITDA has increased by 5.1% yoy at constant change, a good performance but don’t get too excited: excluding Spain the EBITDA growth should have been only 2.5% and, as in Q1 (the EBITDA had grown by 10%!), the increase was partly due to one-time fibre installation charges in Sweden. The real growth is indeed 1.5%, but it remains a quite correct performance. The outlook for 2016 (to generate an EBITDA in line or slightly above the level in 2015) is, however, unchanged. Management still expects growth to slow as Telia will face tougher yoy comparisons in the quarters to come. Note in parallel that 2016 will be the peak year for increased investments in fibre, mobile coverage and transformation (but that’s for the good cause!). Capex for continuing operations, excluding licence and spectrum fees, is expected to be SEK14-15bn.
Accelerating the fibre roll-out in Sweden
20 Apr 16
Q1 sales in local currencies and at constant perimeter have decreased by 1.1% yoy while EBITDA increased by 10.4% yoy. Although the sales decrease is a little bit disappointing (we were expecting a 1% increase), the EBITDA growth is quite a bit better than expected (even if part of the improvement is due to higher fibre installation revenues). Remember the Eurasia region is now reported as discontinued operations, the group having announced in September 2015 an orderly retreat from all its operations in this region to refocus on Europe. As for 2016, the aim, which was to maintain EBITDA (from continuing operations), in local currencies, at the same level as in 2015, is now to generate an EBITDA in line or slightly above the level in 2015. Note in parallel that 2016 will be the peak year for increased investments in fibre, mobile coverage and transformation (but that’s for the good cause!). Capex for continuing operations, excluding licence and spectrum fees, is expected to be SEK14-15bn. So a quite correct release, with EBITDA growth reflecting the fibre roll-out at a record pace in Sweden. Indeed, EBITDA increased mainly due to higher one-time fibre installation charges, a better equipment sales mix and good cost control. Thus management expects growth to slow as Telia will face tougher year-on-year comparisons in the quarters to come.
Focus on Europe
01 Feb 16
Q4 sales in local currencies and excluding the acquisition of Tele2 Norway have increased by nearly 3% yoy while the EBITDA increased by 9% yoy. This is better than in the previous quarters but quite in line with our expectations. The Eurasia region is now reported as discontinued operations, the group having announced in September 2015 an orderly retreat from all its operations in this region in order to refocus on Europe. The global decrease of Teliasonera’s EBITDA in the previous quarters was due to the slowdown in Eurasia (with intensified competition especially in Kazakhstan) where the EBITDA declined by 2/3% despite stable revenues (but this was not the end of the world as, in the key market, Kazakhstan, the EBITDA margin declined from 56.7% to 51%!). As for 2016, the ambition is to maintain EBITDA (from continuing operations), in local currencies, at the same level as in 2015. Note in parallel that 2016 will be the peak year of the increased investments in fiber, mobile coverage and transformation (but that’s for the good cause!). CAPEX for continuing operations, excluding license and spectrum fees, is expected to be SEK14-15bn. Further, it was also stated that results in Q4 2015 would be impacted by a non-cash impairment charge of SEK5.3bn related to operations in Uzbekistan and a non-cash impairment charge of SEK1.9bn related to operations in Denmark. As a reminder, in September 2015 Teliasonera and Telenor announced the withdrawal of the proposed merger of their respective business units in Denmark (they have respectively 24% and 21% market shares on mobile vs. 40% for the leader TDC). The companies were not able to agree acceptable conditions with the European Commission to proceed with their plan to create a robust mobile operator or rather a de facto duopoly.
A nice dividend from Turkcell in Q2
20 Jul 15
Q2 sales in local currencies and excluding the acquisition of Tele2 Norway have increased by nearly 2% yoy while the EBITDA decreased by 4% yoy. This is very slightly better than in Q1 and quite in line with our expectations. Remember that, like in Q1, the EBITDA decrease (excluding Tele2 Norway) is due to the slowdown in Eurasia (with intensified competition especially in Kazakhstan) where the EBITDA declined by 2.7% despite stable revenues (but this is not the end of the world as, in the key market, Kazakhstan, the EBITDA margin declined from 56.7% to 51%!) but also to... Sweden, due to market investments and a changed product mix (note competitor activity intensified in this country at the beginning of the year with more generous data bundles). The 2015 outlook is unchanged: sales and EBITDA are expected to be around the same level as in 2014 (excluding Tele2 Norway’s acquisition or the Danish merger with Telenor).
12 Apr 16
Rigid-plastic-products manufacturer and waste-management services provider One51 is holding a general meeting on 21 April to gain the shareholder approvals required to issue shares for a potential flotation on AIM and the Enterprise Securities Market (ESM). In 2014, Ireland-based One51 paid 78p a share in cash for AIM-quoted Straight, which valued the wheeled-bins manufacturer at £10.7m. One51 subsequently bought a controlling stake in Canadian plasticproducts business IPL. A flotation would trigger a deal to swap One51 shares for the one-third of IPL that it does not currently own. The plastics division is the main focus of expansion. One51 is a substantial business. In 2015, revenues grew from €276.5m to €366m, while underlying profit almost doubled from €16.2m to €31.9m. A full 12-month contribution from IPL would have taken revenues to €473.5m and grown profit even more rapidly. Plastic products generate nearly two-thirds of revenues and a greater proportion of profit. Net debt was €120m at the end of 2015 and there is contingent consideration of more than €33m that could become payable. Numis and Davy have been appointed as advisers for the flotation, which is still dependent on market conditions. Although One51 is unlisted there has been regular trading in its shares since 2007 and by the end of March the shares were changing hands at €1.70 each.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
15 Aug 16
Australian fintech company ThinkSmart Ltd intends to switch its quotation from ASX to AIM. This is the culmination of a strategic review started nearly a year ago. Henderson is subscribing for £5m-worth of shares at 25p (A$0.44) each in a pre-flotation placing at a premium to the ASX market price, which will give the fund manager 17% of the enlarged share capital. ThinkSmart requires regulatory approvals and a ruling from the Australian Taxation Office in order to go ahead with the transfer of quotation. Shareholders will also have to agree to the move. The introduction to AIM is expected to happen in early November, following a tender offer for up to 10 million shares. The cash raised from Henderson will be used to develop the business but it will also help to finance the tender offer, which will be at an indicative share price range of A$0.38 to A$0.55. ThinkSmart provides digital, paperless and retail point of sale finance services via its SmartCheck technology. Dixons Carphone Group subsidiary Dixons Retail is a major customer and the relationship goes back 13 years. Together they have developed a leasefinance package called Upgrade Anytime, which enables customers to upgrade to the latest computer and consumer electronics equipment. A contract has recently been won with the Carphone Warehouse subsidiary. Although ThinkSmart is based in Western Australia it also has an office in Manchester.
Making Mobiles Better
17 Jan 17
Mobile phones are increasingly the key connection for the modern world. This means that the performance of mobile phones, and their networks, is going to become more critical for all the apps and businesses that rely on them. New technologies such as VR, AR, and AV will need better, more reliable connections to really move into the mainstream. In this thematic piece we attempt to identify some of the most important issues facing mobile phone networks and their users, and start to identify solutions and enablers that will solve these problems and create value by doing so.
The Cybersecurity Rebellion: “No, I’m Spartacus!”
07 Jun 16
Steve “Woz” Wozniak, infamous co-founder of Apple, was the latest culprit to send shivers across the tech world by claiming Cybersecurity is the greatest threat the world has faced since the atom bomb. Mr Wozniak was alluding to the heightened sense of fear that recent high profile breaches have caused Cybersecurity to be put at the forefront of political, corporate and now it would appear, investor agendas. As the topic gains increasing awareness, it gives rise to a number of companies claiming to be a “thought leader” in the Cybersecurity space, holding the best IP and the best routes to market. With many companies singing from the same loss making hymn sheet it is making it ever difficult to spot the true “Spartacus” from the crowd.