TeliaSonera's Profit Rose 6.8%, Sales Rise


Nordic telecommunications operator TeliaSonera on Friday reported a 6.8 percent rise in its third-quarter net profit, boosted by higher sales and its minority-owned operations in Eurasia, but still warned for more savings initiatives.

The Stockholm-based company also announced plans to hand out an extraordinary dividend of around 10 billion kronor (1.09 billion euros; $1.56 billion) to shareholders in 2007.

In the three-months ended Sept. 30, net profit climbed to 5.4 billion kronor (586 million euros; $839 million), up from 5.05 billion kronor in the year-ago period.

Sales for the quarter reached 24.8 billion kronor (2.69 million euros; $3.85 million), compared with 23.16 billion in the same three months in 2006.

In the second quarter, the company said it would speed up its strategy to focus on developing operations in its home markets and creating value at its operations in the East, including Turkey and Russia, as well as developing its investment in Spain.

The company now said its efficiency measures, in Sweden and Finland, implemented on April 1 and expected to last until the end of 2007, are forecast to create annual gross savings effect of around 1.5 billion kronor (163 million euros; $233 million), down from its previous estimate of 2.3 billion kronor, as of 2008.

As a result, the company's restructuring costs, are estimated to reach some 1 billion kronor (109 million euros; $156 million) in 2007. More efficiency measures are planned, it said, of which details will be given in February next year.