Sonera posts small loss

July 23, 2001 Posted: 1150 GMT

LONDON (CNN) -- Finland's biggest telecom operator, Sonera, saw is shares rebound on Monday after it posted a smaller-than-expected second-quarter loss.

In midday trade in Helskini, the share price had risen 1.3 percent to 6.07 ($5.27) after earlier hitting life lows of 5.70.

The company reported a second-quarter loss before one time items of 28 million ($24 million), compared with an 85 million profit on the equivalent year-ago period, beating the top estimate for a loss of 46 million euros in a poll conducted by Reuters.

Sonera said in a statement that Mobile Communications Finland had showed good profitability and its profitability for the full-year would be unchanged from 2000. The Finnish unit accounts for around 60 percent of group sales.

Sonera had reported in January that profits tumbled 23 percent in 2000.

Finland's largest telecom firm blamed the downturn on extra costs involved in rolling out new services such as mobile and Internet portals.

Sonera also said it may consider withdrawing from its third-generation (3G) mobile business in Norway to help cut its large debts linked to investments in Germany.

Such a move could spell the end of its Broadbank Mobile joint venture with Norway's operator Enitel, which last month said it would sell its 50 percent stake in the group.

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