Telia Company AB announced earnings results for the fourth quarter and year ended December 31, 2016. For the quarter, net sales in local currencies, excluding acquisitions and disposals, increased 0.2%. In reported currency, net sales declined 6.7% to SEK 21,130 million against SEK 22,638 million a year ago. EBITDA, excluding non-recurring items, declined 1.9% in local currencies, excluding acquisitions and disposals. In reported currency, EBITDA, excluding non-recurring items, declined 2.7% to SEK 6,380 million against SEK 6,556 million a year ago. Operating income, excluding non-recurring items, dropped 24.3% to SEK 3,737 million against SEK 4,938 million mainly due to lower contribution from associated companies. Total net income attributable to the owners of the parent rose to SEK 7,338 million against net loss of SEK 3,010 a year ago. Earnings per share to SEK 1.69 against SEK 0.70 a year ago, due to Yoigo capital gain and by impairment charges last year in Uzbekistan and Denmark.

For the year, net sales in local currencies, excluding acquisitions and disposals, declined 0.8%. In reported currency, net sales declined 2.7% to SEK 84,178 million against SEK 86,498 million a year ago. Operating income, excluding non-recurring items, declined 3.9% to SEK 17,123 million against SEK 17,814 million a year ago. Total net income attributable to the owners of the parent dropped to SEK 3,732 million against SEK 8,551 million a year ago. Earnings per share to SEK 0.86 against SEK 1.97 a year ago, mainly due to provision for settlement amount proposed by the US and Dutch authorities.

In terms of financial guidance for 2017 organic EBITDA, from continuing operations, excluding non-recurring items, is expected to be around the 2016 level. The company aims for operational free cash flow (free cash flow excluding licenses and dividends from associates), from continuing operations, to be above SEK 7 billion (from SEK 5.5 billion 2016). This operational free cash flow together with dividends from associates, should cover a dividend around the 2016 level.

For 2018 and 2019 the company aim to further increase the operational cash flow.