Slimline Tele2 turns a profit in third quarter

22 Oct 2008

Swedish telecoms group Tele2, which has recently been shedding European subsidiaries at a rapid rate, has posted a net profit of SEK160 million (USD21 million) in the third quarter, compared to a net loss of SEK188 million in the corresponding period of 2007. The turnaround arrived on a 4% year-on-year pro forma rise in revenues to SEK9.89 billion in the three months ended 30 September 2008, driven by a net increase of 495,000 customers, as 682,000 new mobile users and 8,000 fixed broadband additions offset the loss of 195,000 fixed line subscribers. The group ended September with a total customer base of 23.967 million. 3Q 2008 EBITDA was SEK2.25 billion, up from SEK1.75 billion a year earlier, which the company attributed to a larger contribution from mobile services on its own networks (having sold off the majority of MVNO operations), and positive EBITDA from fixed broadband operations. Profitability was achieved despite a significant increase in CAPEX from SEK635 million in 3Q 2007 to SEK1.66 billion in June-September 2008, as it expanded its mobile presence into additional regions of Russia. Tele2’s new CEO Harri Koponen said the company will focus on mobile, mobile internet and corporate services; earlier this month its domestic unit unveiled a new entry-level pay-as-you-go mobile broadband package with a monthly charge ceiling, to encourage increased take-up of its 3.5G services.

Sweden, Tele2,


Subscribe to CommsUpdate to get the day’s top telecom headlines delivered to your email.

Subscribe to CommsUpdate



Filter CommsUpdate by the following categories or use the search.


Visit our help page information on performing advanced searches, including how to restrict the results by country or company.


CommsUpdate is an outstanding advertising venue for companies seeking to reach:

  • International carriers
  • Wholesale service providers
  • Equipment and software vendors
  • Telecom investors
  • Regulators

Learn more about advertising on CommsUpdate.