Swedish telecoms company TeliaSonera stood by its outlook for 2009 and said that given the tough economic climate it would continue to develop Yoigo, its majority-owned Spanish mobile business.
The Nordic region's biggest telecom operator, which has been looking at possibilities for Yoigo, said on Monday it expected the Spanish venture to turn EBITDA positive in the fourth quarter of 2010 and cash flow positive at the end of 2011.
TeliaSonera said it had considered different strategic options for Yoigo but would keep the Spanish operation for now.
Given the present economic climate, we have not been able to find an acceptable solution, and therefore our current focus is to continue to develop Yoigo's business, the company said in a statement.
TeliaSonera also reiterated its outlook for 2009, saying net sales in local currencies and excluding acquisitions were expected to be in line with or slightly below 2008 levels.
It repeated its view that the 2009 addressable cost base would come in below the 33.8 billion Swedish crowns ($4.7 billion) seen in 2008, in local currencies and excluding acquisitions.
Its 2009 EBITDA margin was expected to exceed the level of 2008, excluding non-recurring items, while its CAPEX-to-sales ratio was expected to be in the range of 13-14 percent.
On mergers and acquisitions, chief executive Lars Nyberg said the company would have a disciplined approach, with a strategy to raise ownership in core holdings and evaluate complementary acquisitions while also looking at new markets.
(Editing by Dan Lalor)
($1 = 7.139 Swedish crowns)