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UPDATE 1-Telia Q2 core profit just beats expectations, writes down value of Eurasian assets

(Adds CEO comments, analyst, details)

July 20 (Reuters) - Nordic telecom operator Telia on Wednesday reported core profit just above expectations and repeated its 2016 outlook, and said it saw early signs of market stabilization in the region Eurasia which it is in the process of exiting.

* Q2 EBITDA, excluding non-recurring items, increased 4.1 percent to SEK 6,389 million (6,136) * CEO Johan Dennelind says nothing new to report about sale of assets in region Eurasia, still sees exit this year * Dennelind sees no big negative effect short-term from planned Tele2 acquisition of TDC Sweden and cable operator Com Hem’s decision to focus on fiber to single family homes * Dennelind says still no forecast for when Swedish B2B operations will grow revenues * Telia says full year outlook is unchanged * Says: “In region Eurasia the remaining operations were still impacted by high competition and negative currency ef-fects but we see some early signs of market stabilization.” * Says continues to work hard to solve our issues surrounding Uzbekistan and to responsibly reduce our presence in region Eurasia * Writes down value of assets in Uzbekistan, Tajikistan and Afghanistan by 1 bln crowns in Q2 * Swedbank analyst Stefan Ward says stable report in line with his expectations, sees no reason to change buy recommendation for Telia shares

* Reuters poll: Telia Q2 core EBITDA was seen at SEK 6.3 billion, revenues at SEK 21.2 billion

* Repeats expects EBITDA from continuing operations, excluding non-re-curring items, in local currencies, excluding acquisitions and disposals, to be in line or slightly above the level in 2015

* Says on track to reach the cost reduction target of SEK 2 billion run-rate by the end of 2017 Source text for Eikon: For consensus, please click on: Further company coverage: (Reporting by Olof Swahnberg; editing by Sven Nordenstam)

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