• Sweden edition
 
TeliaSonera cuts jobs despite profits boost

TeliaSonera cuts jobs despite profits boost

Published: 03 Feb 2011 08:20 GMT+01:00
Updated: 03 Feb 2011 11:43 GMT+01:00

TeliaSonera, born out of the 2002 merger between Swedish Telia and Finnish

Sonera, posted a net profit last year of 21.26 billion kronor ($3.31 billion), up from 18.85 billion in 2009, despite a two-percent drop in sales to 106.58 billion kronor.

The dwindling sales were especially due to the increasingly strong krona, and the company said that without the negative exchange rate impact, its sales were up 3.5 percent in 2010.

TeliaSonera also saw its subscription numbers swell by seven percent last year to 156.5 million, 55.3 million of them in the consolidates operations and 101.2 million in associated companies.

In the fourth quarter, TeliaSonera posted an eight-percent-hike in net profits to 5.31 billion kronor on sales down three percent at 26.77 billion.

Disregarding the negative impact of the exchange rate however, the company's

fourth quarter sales were up 4.2 percent in the quarter.

The results slightly missed the expectations of analysts polled by Dow Jones Newswires, who had predicted a quarterly net profit of 5.33 billion kronor and a two-percent drop in sales.

Nonetheless, the figures allowed the company to raise its annual dividend to 2.75 kronor per share from 2.25 kronor in 2009.

Following Thursday's earnings, TeliaSonera saw its stock price jump 2.82 percent to 54.60 kronor a share in mid-morning trading on a Stockholm stock exchange down 0.09 percent.

For 2011, the Swedish-Finnish company forecast "somewhat" higher sales, boosted by strong growth in Spain, Eastern Europe and central Asia, while mobile Internet traffic volumes are expected to grow eight fold over three years as the use of smartphones and tablet devices continues to balloon.

"The demand for smart phones is growing at an exceptional rate. In 2010, seven out of 10 new mobile phones sold in our Swedish stores were smart phones," TeliaSonera chief executive Lars Nyberg said in the earnings statement.

The hike in mobile data services has however had an impact on TeliaSonera's traditional broadband offerings, and the company said it planned to cut 800 of

5,000 jobs in that division due to "synergies."

The 800 job cuts -- 640 in Sweden and 160 in Finland -- will meanwhile be balanced out by an expected 200 new jobs created elsewhere, the company said.

Like its largest Nordic competitors, Norwegian Telenor and Swedish Tele2, TeliaSonera has in recent years set its sights on expanding towards the East,

increasing its presence in the Baltic countries, Turkey, Russia and other former Soviet states.

TeliaSonera, which shares the rank as leading Nordic operator with Telenor, reported that its Spanish mobile operator Yoigo met its goals and reported positive results in the fourth quarter.

"Yoigo is well positioned to compete in Spain and has achieved a market share of four percent. In order to maximize shareholder value, we will now continue to develop the business and the next milestone is to record positive cash flow at the end of 2011," Nyberg said.

TeliaSonera, holds 44 percent of Russia's second largest operator Megafon and 38 percent of Turkish leader Turkcell, which it aims to merge with Russian group Alfa's holdings in the two companies. The deal has however been blocked for the time being by a Russian court.

TT/The Local/pvs (news@thelocal.se)

Don't miss...X
Left Right

Your comments about this article

13:52 February 3, 2011 by tzatara1
of course they will cut jobs ...

the investors want only profits , they don't like paying salaries , insurances ....

Just make people work harder and harder for the same income .

I DON'T LIKE THAT THE US PHILOSOPHY FOR MAKING MONEY ON PEOPLE'S BACK IS GETTING PLACE IN THE LOVELY SWEDEN ....

WE ALREADY SAW WHAT IS THE LONG TERM RESULT OF THIS ACTIONS !

politicions , economists .....THINK for you fellows countrymen
Today's headlines
Suspected Ebola case ruled out in Sweden
Photo: Fredrik Sandberg/TT

Suspected Ebola case ruled out in Sweden

UPDATED: Officials at a Stockholm hospital reported that they had found a suspected case of the Ebola virus on Sunday night. But the case was dismissed on Monday. READ  

Murderer on the loose after breakout

Murderer on the loose after breakout

A 34-year-old man who killed a child is on the run after he broke out of a psychiatric ward in central Sweden. READ  

Skåne floods
Huge clear up underway after Skåne floods
A Malmö bus under water. Photo: Stig Åke Jönsson/TT

Huge clear up underway after Skåne floods

Flood waters subsided in the southern Sweden region of Skåne on Monday, after flash flooding saw chaos on roads and trains at the weekend. READ  

Elections 2014
Sweden's Alliance reveals full manifesto
Photo: Henrik Montgomery/TT

Sweden's Alliance reveals full manifesto

UPDATED: Leaders of the Moderate Party, the Centre Party, the Liberal Party and the Christian Democrats have announced their complete list of election promises in Stockholm's Nacka. READ  

Man shot dead in hunting accident
Photo: Hunter Desportes/Flickr

Man shot dead in hunting accident

Police in northern Sweden say a man was killed on Monday morning after what they described as a "hunting accident". READ  

Zlatan scores hat trick in PSG thrashing
Photo: AP

Zlatan scores hat trick in PSG thrashing

Champions Paris Saint-Germain thumped Saint-Etienne 5-0 as Bordeaux saw their 100 percent record at the start of the Ligue 1 season ended on Sunday with a 1-1 draw against Bastia. READ  

Flash floods cause chaos in southern Sweden
A car in Malmö on Sunday. Photo: Stig-Åke Jönsson/TT

Flash floods cause chaos in southern Sweden

The Skåne region of southern Sweden was hit suddenly by extreme rains on Sunday morning, with houses flooded, buses evacuated, and people having to swim to safety from their cars. READ  

Fit-again Ibrahimovic set for PSG return
Photo: TT

Fit-again Ibrahimovic set for PSG return

Zlatan Ibrahimovic is set to make his comeback for Paris Saint-Germain against Saint-Etienne in Ligue 1 on Sunday after two weeks on the sidelines with an abdominal muscle injury. READ  

Military raises readiness level over Ukraine
Swedish soldiers in Afghanistan. File photo: Magnus Lindstedt/Armed Forces

Military raises readiness level over Ukraine

The Swedish military said Saturday it had increased intelligence gathering and called in extra staff to its headquarters over the crisis in Ukraine, as the prime minister compared Russia's current behaviour with the Cold War. READ  

Police injured in anti-Nazi protest in Stockholm
Police and demonstrators on Saturday. Photo: Fredrik Persson/TT

Police injured in anti-Nazi protest in Stockholm

Swedish police said three officers were injured Saturday as they faced a crowd of thousands protesting against a neo-Nazi rally in central Stockholm. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Tech
Sweden's highest peak to lose title next year
Politics
How immigration became a key election issue
Society
Brit's life in Sweden becomes BBC radio show
Gallery
People-watching August 27
Gallery
Top ten false friends in Swedish
Blog updates

25 August

Hit och dit, här och där (The Swedish Teacher) »

" Hej igen! A common challenge for Swedish language students are the location adverbs hit/här, dit/där, hem/hemma etc. Some of the location adverbs come in two versions. We should use one type of location adverb when we use a verb describes where we are, and we should use the other type of location adverb when we the verb..." READ »

 

25 August

The Dollar Store (Blogweiser) »

"A dollar store in Sweden. Blog post: http://t.co/tNuuvcP1q0 #USD #greenbacks #sweden #sverige pic.twitter.com/RHFAYf7U1k — Joel Sherwood (@joeldsherwood) August 23, 2014 There’s a chain here in Sweden called The DollarStore. This name always stood out to me in a country where they don’t use dollars. I went there for the first time this weekend. They actually accepted greenbacks..." READ »

 
 
 
National
Roma advocate scoops Wallenberg prize
Society
Meet the man who made a Swedish store recall its high heels for kids
Business & Money
'How I came to run my own business in Sweden'
Politics
Expert explains why Sweden's election oozes uncertainty
National
City plays Schindler's List theme at Nazi rally
Society
For Stockholm Fashion Week, here's the A-Z of Swedish fashion
National
'Amnesiac' man avoids deportation for ten years
Gallery
Princess Estelle through the years
Business & Money
Swedish city all set for six-hour workday trial
Business & Money
Five golden rules for the Swedish job hunt
Sponsored Article
Graduates: Insure your income in Sweden with AEA
Gallery
People-watching August 22-24
National
Armed royal guards caught (very) drunk on the job
National
Sweden orders textbook on Roma discrimination
Gallery
Violent anti-Nazi demonstrations in Malmö
Society
A closer look at Sweden's five official minority languages
Gallery
See the destruction from the southern Sweden floods
Politics
'Sweden Democrats hold the key to elections'
Society
Swedes celebrate first day of smelly fish season
Sponsored Article
Find out what gives this Swedish school executive appeal
Sponsored Article
Introducing...Your finances in Stockholm
Sponsored Article
Introducing...Housing in Stockholm
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

746
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se