• 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)

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
Stockholm 'Russian sub' alert
No truth to Russia's submarine claim: Dutch
A CB90-class fast assault craft at Kullbäling, a small island in Stockholm's archipelago. Photo: Anders Wiklund/TT

No truth to Russia's submarine claim: Dutch

The Netherlands on Monday denied a Russian claim that a mystery vessel the Swedish military has been looking for could be Dutch. READ  

Perspective: ‘Russian sub’ alert
Why a foreign vessel lurks in Swedish waters
The HMS Stockholm patrols Jungfrufjärden in the Stockholm archipelago on Monday morning. Photo: Anders Wiklund/TT

Why a foreign vessel lurks in Swedish waters

With Sweden engaged in its biggest domestic military operation since the Cold War, The Local spoke to Johan Wiktorin, a fellow at the Swedish Royal Academy of War Sciences, to get insight into what’s going on in the Stockholm archipelago. READ  

Lufthansa Strike
Over 20 Swedish flights hit by Lufthansa strike
Grounded Lufthansa planes. Photo: TT

Over 20 Swedish flights hit by Lufthansa strike

A strike by pilots at German airline Lufthansa will affect over 20 flights in and out of Sweden over the next two days. READ  

National
Dentist gives free care to Roma beggars
Photo: Shutterstock

Dentist gives free care to Roma beggars

A dentist in western Sweden is offering free dental care to his town's Roma begging population. READ  

Ebola crisis
Stockholm patient does not have Ebola
Infection clinic at Karolinska University Hospital in Huddinge. Photo: Fredrik Sandberg/TT

Stockholm patient does not have Ebola

UPDATED: A patient at a Stockholm hospital was told on Monday morning that he does not have Ebola, after he was forced to spend the night in isolation. READ  

Business & Money
Electrolux profit soars after cost-cutting efforts
Photo: TT

Electrolux profit soars after cost-cutting efforts

Swedish electrical appliance maker Electrolux reported its third-quarter net profit soared 42 percent to 933 million kronor ($130 million) thanks to a cost-cutting programme started at the end of last year. READ  

National
School photographer fired for homophobic slur
Photo credit: Shutterstock

School photographer fired for homophobic slur

A photographer at a high school in southern Sweden was sacked after he called one of the students a "fag" during a shoot. READ  

Stockholm 'Russian sub' alert
No let-up in search for foreign vessel
Minehunter HMS Koster takes part in the search in the Stockholm archipelago on Sunday. Photo: Marko Säävälä/TT

No let-up in search for foreign vessel

A hunt for foreign underwater activity near Stockholm entered its fourth day on Monday as Sweden’s armed forces vowed to keep searching “day and night” for what media reports suggest may be a damaged Russian vessel. READ  

Ebola crisis
Patient in isolation after airport Ebola alert

Patient in isolation after airport Ebola alert

A male passenger who landed at Stockholm's Arlanda airport has been transferred to an isolation unit amid fears he may be suffering from the Ebola virus. But a specialist was keen to play down concerns. READ  

Stockholm 'Russian sub' alert
Pictured: 'suspicious object' off Swedish coast
Photo: Swedish Armed Forces

Pictured: 'suspicious object' off Swedish coast

Sweden’s Armed Forces have said it is likely a foreign power is conducting operations in Swedish waters, and have released pictures of a suspicious object seen in the Stockholm Archipelago. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Gallery
PHOTOS: 'Foreign activity' in Swedish waters
National
Sweden deploys troops over underwater threat
Gallery
People-watching: October 19th
TT
Society
QUIZ: How good is your Swedish?
Business & Money
Get your own office in Gothenburg or Stockholm - free for a day
Blog updates

19 October

Getting it (Blogweiser) »

"Follow Joel Sherwood on FB Few watch baseball in Sweden. This is excellent when your team loses..." READ »

 

17 October

Editor’s Blog, Oct 17th (The Local Sweden) »

"Hi readers, Here’s the whole week of news in just 60 seconds. The most-read story was about a..." READ »

 
 
 
National
A Touch of Scandinavia: Reindeer in the kitchen
Lifestyle
What's on in Sweden: October 17th - 24th
Society
The nudity... and nine other things expat men notice in Sweden
Gallery
People-watching: October 15th
Gallery
Your views: Should outdoor smoking be banned in Sweden?
Business & Money
Sweden has 'large hole' in finances
Sponsored Article
Introducing... Finding a job in Stockholm
Society
Monster salmon caught in northern Sweden
Gallery
Property of the week: Lorensberg
National
Scandinavia's child bride
National
Ebola crisis: How is Sweden preparing?
Lifestyle
Sweden's The Bridge to become 'more Danish'
Business & Money
How Sweden is becoming a cashless society
Gallery
Stockholm Burlesque Festival 2014
National
How a little red horse became a symbol for Sweden
Gallery
People-watching: October 12th
Business & Money
The hottest start-ups from southern Sweden
National
What's on in Sweden: October 10th - 17th
National
Stockholm is 'best' region for well-being
Gallery
People-watching: October 8th
National
Five facts to know about Patrick Modiano
Society
My Swedish Career: A French fashionista in Sweden
Society
Swede's anti-bully Facebook tale goes viral
Society
Have you seen Sweden's viral subway cancer campaign?
National
Isis: Swedes linked to Turkish prisoner swap
National
Should Swedes be banned from buying sex abroad?
Gallery
Fredrik Reinfeldt's leaving presents
National
Five Swedish TV shows you shouldn't miss
Gallery
A tool belt, a casserole, and a book. Fredrik Reinfeldt's parliament gifts
TT
Lifestyle
Top five winter festivals in Sweden
TT
National
Sami reindeer herders win mine reprieve
Gallery
Property of the Week: Gamla Enskede
Sponsored Article
How to catch the first lobster of the year
Politics
Ten new minister faces you should know
Tech
First womb transplant baby in world born in Sweden
Gallery
People-watching: October 5th
National
What's on in Sweden
National
Sweden rethinks Afghan translators' protection
Society
Interview with Geena Davis: 'I want to be in a Swedish movie'
Gallery
Stefan Löfven through the years
Team SCA
Sponsored Article
All-female SCA team takes off on Volvo Ocean Race
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

984
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
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
AA-EUROPE.ORG/SWEDEN