TeliaSonera saw profits rise in Q3 thanks to cost-cutting measures, including large job cuts, but revenues continue to decline.

Overall, third quarter sales fell 1.8 percent year-on-year to €2.9 billion.

Revenues from the operator’s Mobility Services unit were down 2.1 percent while those from Broadband Services down 4.5 percent.

As usual, revenues from TeliaSonera's Eurasian operations boosted performance – they were up 3.1 percent with Uzbekistan the best performing region with 18.9 percent growth.

The operator also saw sales grow at MegaFon and Turkcell, in which it holds minority stakes.

Net profits rose 18 percent to €585 million, meanwhile, as the operator continued with its plan, announced in Q3 last year, to cut 2,000 jobs and roughly €225 million in costs by the end of 2014.

Nearly 1,500 people have been given notice year to date, the company revealed.

“Revenues continued to be impacted by difficult economic environment in our markets and lower regulated mobile termination rates, while profitability was supported by a further reduction in the cost base,” commented the new president and CEO Johan Dennelind.

Dennelind, who was installed in his post on 1 September, said the company’s new data centric pricing models continued to gain traction across Scandinavia, citing positive billed revenue growth in all three markets where these price plans have been introduced.

“My initial observations as new CEO are that TeliaSonera has a solid asset base with a diversified product portfolio, attractive footprint, strong brands and competent people,” he added.

However, he admitted that the company’s position “has weakened in too many of our markets” and it is “essential” to strengthen competitiveness.

“In a fast changing environment we have to understand our customers’ requirements and further develop a company culture that encourages agility and innovation.

“We have to reduce complexity to enable an effective way of working, accelerate decision-making and ensure our employees stay skilled and motivated.”

The CEO announced a new group function for Strategy, Mergers & Acquisitions and Innovation that will “enable a holistic view on TeliaSonera’s future development”.

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