TELIASONERA CORP., THE NORDIC REGION'S LARGEST TELECOMMUNICATIONS OPERATOR REPORTED DOUBLED EARNINGS IN THE SECOND QUARTER FRIDAY, MOSTLY DRIVEN BY SUCCESSFUL FOREIGN ACQUISITIONS AND DESPITE A DIP IN SALES IN MAIN HOME MARKETS, REPORTED AP. NET PROFITS IN THE APRIL-JUNE PERIOD REACHED 4.21 BILLION KRONER (¤456 MILLION; US$572 MILLION) RISING 0.94 KRONER (¤0.10; US$0.13) PER SHARE, FROM THE 2.02 BILLION KRONER, OR 0.44 KRONER PER SHARE, IN THE SAME PERIOD LAST YEAR. SALES INCREASED 4.5 PERCENT TO 22.74 BILLION KRONER (¤2.46 BILLION; US$3.1 BILLION), COMPARED TO THE 21.75 BILLION KRONER IN THE YEAR-AGO QUARTER, SLIGHTLY ABOVE FORECASTS. BUT THE MARKET WAS UNIMPRESSED WITH THE REPORT AND SHARES IN TELIASONERA WENT DOWN 3.8 PERCENT TO 40.90 KRONOR (¤4.40; US$5.60) IN MORNING TRADING ON THE STOCKHOLM BOURSE. THE COMPANY, CREATED BY THE MERGER IN 2002 OF FINLAND'S SONERA AND SWEDEN'S TELIA, SAID THE 2006 OUTLOOK WAS GOOD, WITH MOBILE AND BROADBAND GROWTH EXPECTED TO CONTINUE. CEO ANDERS IGEL SAID ON THE EARNINGS REPORT THAT THE «STRONG PERFORMANCE WAS DRIVEN BY GOOD DEVELOPMENT IN MOST OPERATIONS, SUCCESSFUL IMPLEMENTATION OF SYNERGIES FROM ACQUISITIONS AND EFFECTS FROM ONGOING EFFICIENCY MEASURES.» IN SWEDEN AND FINLAND, ITS TWO LARGEST MARKETS _ WHERE TELIASONERA LIKE OTHER EUROPEAN TELECOM OPERATORS STRUGGLES AGAINST SHRINKING REVENUES FROM FIXED-LINE TELEPHONY _ REVENUES DIPPED SLIGHTLY. IN SWEDEN, EARNINGS WERE LOWER AS RESTRUCTURING DID NOT COMPENSATE SALES DECLINE AND PRICE PRESSURE WAS STRONG IN ALL PRODUCT AREAS. NET SALES WERE DOWN TO 9.2 BILLION KRONER (¤998 MILLION; US$1.2 BILLION), FROM 9.8 BILLION IN THE SECOND QUARTER OF 2005. IN THE FINISH MOBILE MARKET, NET SALES FELL TO 4.1 BILLION KRONER (¤445 MILLION; US$558 MILLION), FROM 4.3 BILLION, ALTHOUGH THERE WERE «REASONABLE LEVELS OF SALES OF BUNDLE OFFERS CONTAINING 3G TECHNOLOGY,» TELIASONERA SAID. LAST MONTH, TELIASONERA BOUGHT A MAJORITY STAKE IN SPANISH WIRELESS STARTUP XFERA AND ALSO ACQUIRED THE SECOND LARGEST NORWEGIAN SUPPLIER OF BROADBAND, NEXTGENTEL, IN A PUSH TO BOOST ITS NORDIC OFFERING. «WE MADE TWO ACQUISITIONS WHERE THE STRENGTHS OF OUR CURRENT OPERATIONS CAN BE PROFITABLY UTILIZED,» IGEL SAID. «XFERA IS EXPECTED TO BE CASH FLOW POSITIVE AND EARNINGS ACCRETIVE WITHIN FIVE YEARS.» BASED IN STOCKHOLM, TELIASONERA HAS 12 MILLION WIRELESS SUBSCRIBERS IN THE NORDIC AND BALTIC COUNTRIES. SWEDISH AND FINISH GOVERNMENTS OWN 64 PERCENT OF THE COMPANY, WHICH ALSO OWNS PARTS OF TELECOM OPERATORS IN THE BALTICS, RUSSIA, TURKEY AND CENTRAL ASIA.
