TeliaSonera reported disappointing Q1 results on Friday, a day after appointing Norton Rose to run the rule over its growing Eurasian business.

Revenues in the first three months of 2013 were down 4.5 percent year-on-year to €2.9 billion, while profits were flat at €528 million.

New president and CEO Per-Arne Blomquist said the company was putting “significant emphasis” on implementing “efficiency measures” initiated at the end of last year.

“We remain determined to bring total costs down by [€235 million] net over a two year period,” he commented.

As a result, capex was down by over 15 percent compared to the first three months of 2012.

The operator saw revenues decline across its two major business units – mobility services were down 4.8 percent to €1.4 billion, while broadband services were down nine percent to €961 million.

Blomquist said revenues were impacted by major reductions in regulated interconnect rates, higher pressure on traditional voice revenues and slower roll-out of fibre due to cold weather conditions.

Spain bucked the downward trend as revenues there rose by 13 percent.

Earlier this month, TeliaSonera said it will “continue to develop” its Spanish mobile operator business Yoigo after failing to find a buyer.

Revenues in the operator’s Eurasian business unit also improved after rising 4.5 percent to €540 million.

Blomquist took over as president and CEO in February after Lars Nyberg stepped down following a review of allegations surrounding the company's dealings in Uzbekistan six years ago.

The new CEO said the operator had made significant efforts to improve “processes” and will continue to “strengthen our way of working even further”.

On Thursday, TeliaSonera appointed law firm Norton Rose to conduct a thorough review of “the transactions and agreements made in the past few years and the company’s partners in Eurasia”.

The aim of the review is to give TeliaSonera’s new Board of Directors “a clear picture of the company’s transactions in Eurasia and to perform a risk assessment from a business ethical perspective”.

Marie Ehrling, chairman of the Board of TeliaSonera, commented: “The review will be performed in stages, country by country, to allow the scope of the assignment to be adjusted along the way.”

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