TeliaSonera Aktiebolag (publ) announced earnings results for the fourth quarter and full year ended December 31, 2014. For the quarter, the company reported net sales in local currencies, excluding acquisitions and disposals, decreased 2.2%. In reported currency, net sales increased 0.2% to SEK 26,606 million compared with SEK 26,560 million for the same period a year ago. Service revenues in local currencies, excluding acquisitions and disposals, decreased 2.2%. EBITDA, excluding non-recurring items, decreased 3.5% in local currencies, excluding acquisitions and disposals. In reported currency, EBITDA, excluding non-recurring items, decreased 1.4% to SEK 8,604 million compared with SEK 8,728 million for the same period a year ago. The EBITDA margin, excluding non-recurring items, decreased to 32.3% (32.9%). Operating income, excluding non-recurring items, decreased 4.8% to SEK 6,757 million compared with SEK 7,100 million for the same period a year ago. Net income attributable to owners of the parent company increased 34.2% to SEK 2,938 million compared with SEK 2,190 million for the same period a year ago and earnings per share to SEK 0.68 compared with SEK 0.51 for the same period a year ago. Free cash flow decreased to SEK 1,635 million compared with SEK 2,126 million for the same period a year ago, due to changes in working capital. In the fourth quarter, organic service revenues declined by 2.2%, impacted by a more challenging macro-economic environment in Eurasia. Due to the somewhat slower overall revenue development, group EBITDA declined by 3.5% on a comparable basis.

For the full year, the company reported net sales in local currencies, excluding acquisitions and disposals, decreased 1.8%. In reported currency, net sales decreased 0.8% to SEK 101,060 million compared with SEK 101,870 million for the same period a year ago. Service revenues in local currencies, excluding acquisitions and disposals, decreased 1.0%. Net income attributable to owners of the parent company decreased 3.1% to SEK 14,502 million compared with SEK 14,970 million for the same period a year ago and earnings per share to SEK 3.35 compared with SEK 3.46 for the same period a year ago. Free cash flow decreased to SEK 13,046 million compared with SEK 16,310 million for the same period a year ago due to higher cash CAPEX and changes in working capital. Cash flow is down from SEK 16 billion, pretty much last year, to SEK 13 billion. CapEx is high in 2014.

The board of directors proposed ordinary dividend of SEK 3.00 per share for 2014, totaling SEK 13.0 billion or 90% of net income attributable to owners of the parent company.

In 2015, the company targets EBITDA around the same level as in 2014, excluding non-recurring items, in local currencies, excluding acquisitions and disposals, and foresee CAPEX of around SEK 17 billion, excluding license and spectrum fees.