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TeliaSonera To Invest Total Capex Of Up To SEK 6 Bln - SEK 7 Bln In 2015-2016(dpa-AFX International Compact Via Acquire Media NewsEdge) STOCKHOLM (dpa-AFX) - Swedish telecommunications firm TeliaSonera AB (0H6X.L, TLSNY.PK) said that it will invest total accumulated capex of up to 6 billion Swedish kronor -7 billion kronor in 2015-2016 in two main areas. The accumulated capex of 2 billion kronor will be spent on business transformation in 2015-2016 to reach net savings with a yearly run rate of 2 billion kronor during 2017. Accumulated capex of up to 4 billion kronor - 5 billion kronor will be spent on additional grow initiatives in 2015-2016, primarily accelerating the fiber roll-out in Sweden, new B2B offerings, as well as upgrading data networks in Eurasia. In Sweden, the aim is to increase the number of households reached by TeliaSonera's fiber services from 1.1 million to 1.9 million between 2014 and 2018. Continuous capex in TeliaSonera's core operations is expected to be around 15 percent of service revenues the next two years. The firm said that it will invest to grow in its core business in the Nordics and Baltics, in taking Eurasia to the next level on the back of increased demand for mobile internet, and in areas that complement and strengthens its core business. "These initiatives aim to defend or increase our market shares and reach sustainable cost savings, without compromising on dividend to shareholders," said Johan Dennelind, president and CEO of TeliaSonera. TeliaSonera reiterated its guidance for the full year 2014. Net sales in local currencies, excluding acquisitions and disposals, are expected to be slightly below the level in 2013. Currency fluctuations may have a material impact on reported figures in Swedish krona. The EBITDA margin, excluding non-recurring items, is expected to be around the same level as in 2013. The CAPEX-to-sales ratio is expected to be approximately 15 percent, excluding license and spectrum fees. The board of directors have decided that the dividend policy is replaced by a target to distribute an annual dividend of at least 3 kronor per share for the fiscal years 2014 and 2015. The company shall continue to target a solid investment grade long-term credit rating (A- to BBB+). Copyright RTT News/dpa-AFX |