* Q2 operating earnings up 13 percent, beating forecasts
* Lower cost base to offset downturn, no new measures eyed
* Outlook boosted, higher margin now seen from cost cuts
* Shares rise 6.35 percent, outperforming sector
(Adds analyst comments, share price, background)
By Veronica Ek and Love Liman
STOCKHOLM, July 24 (Reuters) - The Nordic region's top telecom operator, TeliaSonera, posted profits ahead of forecasts and said its tight grip on costs would pay off through higher margins this year, despite the economic downturn.
Shares in the company were up 6.35 percent by 0922 GMT, outperforming a 1 percent gain in the DJ Stoxx Telecom Index
"It was a very strong report, strong across the whole board. As usual, fixed line shows a tremendously strong and promising margin performance," said Espen Torgersen, analyst at Carnegie.
Second quarter earnings before interest, tax, depreciation and amortisation (EBITDA), excluding one-off items, rose 13 percent to 9.04 billion Swedish crowns ($1.2 billion) to beat a mean forecast of 8.63 billion in a Reuters poll of analysts.
Sales growth of 9 percent was driven by strength in TeliaSonera's mobile operations in developing markets including Kazakhstan, Azerbaijan, Georgia, Nepal and Cambodia.
That pattern mirrored wider economic developments and chimed in with factors underpinning a reassuring sales update from world no. 1 mobile operator Vodafone that showed strength in India and South Africa mostly compensating for weakness in Europe..
TeliaSonera -- which has operations across the Nordics and Eurasia and, like many of its peers, has fared relatively well in the economic slump -- suggested consumers were still watching their wallets closely.
But analysts praised the firm's cost-cutting focus.
"Things are going better because the cost-cutting is working. They're not exactly getting any help from the economic environment," said one analyst, who asked not to be named.
Cost controls were also a key factor for Vodafone, which said in May it would accelerate cost-cutting plans. Its shares rose 2.5 percent.
LOWER COSTS TO LIFT KEY MARGIN
The Swedish company, which has already announced plans to slash 2,900 jobs in Sweden and Finland, said lower costs and capital expenditure would compensate for the worsening economic situation, resulting in a higher core operating margin.
"Looking ahead, we expect that our efforts to lower addressable costs and capital expenditure will offset the negative impact from declining GDP and rising unemployment in our markets," it said in a statement.
"Therefore we are raising our outlook on the EBITDA margin and now expect a higher margin in 2009 than in 2008."
The previous forecast was for an unchanged 2009 margin from last year's 31.8 percent.
Norwegian operator Telenor posted forecast-beating results on Thursday while U.S. carrier AT&T managed a drop in quarterly profit that was less steep than expected amid flat sales.
TeliaSonera said it expected sales this year to be in line with or slightly below last year's level, stripped for acquisitions and in local currencies.
Net sales for the quarter increased 9 percent to 27.5 billion crowns versus an expected 27.3 billion.
(Editing by Simon Jessop, John Stonestreet)