TeliaSonera has upped its dividend by over five percent as Q4 and full-year 2013 profits decreased dramatically.
The Scandinavian operator reported that profit fell 62 percent year-on-year to €305 million between October and December. For 2013 as a whole, profit was down by a fifth to €1.9 billion.
Revenues fell 2.1 percent to €3 billion in the fourth quarter and declined three percent to €11.5 billion for the full 12 months. TeliaSonera said this was mainly due to negative currency fluctuations and disposals, so organic revenues were flat.
Revenues from the company’s principal Mobility Services business fell 3.5 percent to €5.5 billion in 2013. Every European country suffered except Spain, which recorded a 12.9 percent growth in sales.
Sales from the operator’s broadband services also fell; they declined 6.2 percent to €3.8 billion – leaving growth to come from Eurasia.
TeliaSonera’s emerging market businesses continues to deliver – revenues there grew 3.5 percent to €2.3 billion in 2013 thanks to the performance of Uzbekistan and Nepal.
Group capex rose 3.8 percent to €1.8 billion, meanwhile.
President and CEO Johan Dennelind said 2013 had been “an eventful and challenging year”.
He added: “Overall performance was impacted by modest economic growth, regulatory effects and rapidly changing customer behavior. In this environment, we are pleased to close the year with virtually flat organic revenues, a slight increase in our EBITDA margin and solid free cash flow.”
Thanks to cutting 2,000 jobs, the company said it was halfway to reaching its target of reducing its cost by around €225 million by the end of 2014.
It is also introducing a new operating model in April aimed at reducing overall complexity within the group, enhancing customer focus and clarifying general accountability.