News
Sweden-based telco reports flat revenue, slight decline in EBITDA.
Telia Company swung to a net loss during the third quarter due to a provision it made for a settlement proposed by U.S. and Dutch authorities investigating its Uzbekistan business.
In mid-September, the Sweden-based telco revealed it had been asked to pay $1.4 billion (€1.25 billion) to settle probes into allegations of bribery linked to its entry into Uzbekistan in 2007.
As such, Telia accounted for the sum – equal to 12.5 billion kronor – in its third-quarter financials, causing it to swing to a net loss of SEK8.64 billion, compared to a year-earlier profit of SEK5.02 billion.
"Our discussions with relevant authorities continue with the goal of achieving a resolution that will be in the best interest of our shareholders. It is at present not possible to make a certain assessment on the final outcome or time for resolution, but we believe we are approaching the end of these investigations," said Telia CEO Johan Dennelind, in a statement on Friday.
Meanwhile, revenue was broadly flat at SEK21.52 billion, compared to SEK21.71 billion a year ago, as growth in Denmark, Lithuania, Latvia, and Sweden was offset by declines in Estonia, Finland, Norway, and Spain.
Group EBITDA excluding non-recurring items edged down to SEK6.85 billion from SEK6.96 billion in Q3 2015.
Telia reiterated its 2016 outlook, which sees EBITDA from continuing operations coming in at the same or slightly above 2015, and capex of SEK14 billion-SEK15 billion. Telia plans to pay a minimum full-year dividend of SEK2 per share.
