TeliaSonera's Cautious 2013 Outlook
Sweden's TeliaSonera released its Q412 and FY12 results, showing stable top and bottom lines. While annual revenues declined in Europe mobility operations and Europe broadband operations , this was offset by strong growth of 14% in TeliaSonera's Eurasia results. Despite difficulties in operating environments across Central Asian markets, the se less developed markets offer strong growth potential and continued opportunities for expansion. BMI believes the company's brighter outlook for 2013 reflects more stability in its Eurasian markets and opportunities to capitalise on network upgrades in its mature European markets.
TeliaSonera's Central Asian operations benefited from a rocky ride for Russia's MTS in Uzbekistan, strong growth for private operators in Tajikistan and the overall lower mobile penetration rates in its markets. TeliaSonera's experience in its more mature Western European markets has benefited its Eurasian operations, with LTE launches already in Moldova, Tajikistan and Uzbekistan, and plans for piloting the technology in Kazakhstan and Nepal. Given the weaknesses in the fixed-line markets of these countries, BMI believes there is strong growth potential for mobile broadband solutions.
However, Central Asian markets remain difficult. BMI 's Risk/Reward Ratings give low scores for industry risk as the regulatory and business environments can be difficult for private players. New developments such as the launch of mobile number portability in Azerbaijan and another attempt to privatise Kyrgyz Mobile Company will increase competition and put pressure on existing operators to protect their subscriber bases.
|Eurasia Outperforms, But Outlook Not So Clear|
|TeliaSonera Subscriptions (000) (LHS) & Y-o-Y Revenue Growth (%) (RHS)|