Telia has said it hopes to pay less than anticipated for alleged corruption in Uzbekistan, as it finally sold off its opco in Tajikistan.

The Sweden-based operator made the two announcements as it revealed improved sales but falling profits in the first three months of the year.

The company said a $1.45 billion settlement made with American and Dutch authorities last September may now be reduced to $1 billion.

Telia stands accused of a number of historical wrongdoings, including claims that investments in the acquisition of spectrum licences involved corruption and money laundering.

The operator’s General Counsel, Jonas Bengtsson, said discussions between the parties had been “constructive” but admitted there was no guarantee the fine would be reduced.

“The discussions are still ongoing and we can therefore not comment any further at this point in time,” he said.

Meanwhile, Telia has sold its holding in Tajiki opco Tcell to the Aga Khan Fund for Economic Development just weeks after it said the deal was off.

The two parties agreed a $39 million deal last September, but Telia wrote off the value of the company earlier this month after Tajik regulators broke off contact.

However, Telia has had to settle for less than it had hoped after agreeing a $27.7 million deal for its 60 percent stake.

“By divesting Tcell we have now taken a second step in our strategy to leave region Eurasia and we maintain the ambition to complete our exit in 2017,” said Johan Dennelind (pictured), President and CEO, Telia Company.

The announcements came as Telia reported that net revenues decreased 5.6 percent year-on-year to SEK19.25 billion in Q1, although they rose three percent when measured on a like-for-like basis in local currencies.

Underlying sales were also up 2.6 percent in Sweden, thanks to enterprises buying more fixed and mobile equipment.

Revenues were also up in Denmark, Estonia, Finland, Lithuania and Norway.

[Read more: Swedish operators investigated over preventing new market entrants]

However, group EBITDA fell 1.1 percent to SEK6.15 billion, which Dennelind put down in part to “elevated” but “short-term” costs around customer support, IT and rebranding in Sweden and Finland.

Net income from continuing operations fell 12.3 percent to SEK2.5 billion as operating income tumbled 10.8 percent.

More News

EE TV adds voice commands through Amazon Alexa EE TV adds voice commands through Amazon Alexa EE TV customers will be able to control their set-top boxes through voice commands after the UK operator added support for the Amazon Alexa virtual assistant. More detail
Swisscom toasts profitable second quarter Swisscom toasts profitable second quarter Swisscom reported a 10 percent rise in net profits in the second quarter and upped its EBITDA guidance for the year. More detail
KPN buys IT firm in healthcare push KPN buys IT firm in healthcare push KPN has acquired an IT services provider as it looks to strengthen its offering to the healthcare and public sector markets in the Netherlands. More detail
“Considerable anger” at Telit as CEO resigns over fraud charges “Considerable anger” at Telit as CEO resigns over fraud charges Telit CEO Oozi Cats has formally departed the company after it emerged that he concealed historical criminal charges. More detail
Manx Telecom suspends CFO over alleged drug offences Manx Telecom suspends CFO over alleged drug offences Manx Telecom has suspended its CFO after he was charged with drug smuggling offences. More detail
    

@eurocomms