Tele2’s 1Q net profit up 164%, EBITDA climbs 5%

21 Apr 2010

Net revenues at Swedish telecoms group Tele2 decreased by 3% year-on-year in the first quarter of 2010 to SEK9.54 billion (USD1.33 billion), mainly a result of falling sales in fixed telephony together with the recent divestment of Norwegian fixed broadband operations. However, consolidated net profit in January-March leapt to SEK1.25 billion, from SEK474 million in the corresponding period of 2009, as operating income climbed 15% to SEK1.55 billion and EBITDA rose 5% to SEK2.36 billion. Combined mobile, broadband and fixed CAPEX in the quarter was much lower than a year before, at SEK582 million, compared to SEK1.17 billion in 1Q09, due to a ‘temporary delay’ in investments at Tele2 Russia. Group-wide net customer intake in Q1 2010 amounted to 1.08 million, up from just 5,000 in the year-ago quarter, including the acquisition of a majority share in Kazakh cellco NEO (organic net intake of 811,000 excluding this). Quarterly net additions in mobile services almost tripled year-on-year to 972,000 (264,000 in 1Q09), of which 33,000 (22,000) were mobile broadband internet users. At end-March 2010 the group’s total fixed, mobile and broadband customer base increased to 27.66 million from 24.47 million (including subsequently divested operations) a year earlier, and up from 24.02 million in terms of continuing operations only.

Tele2 Russia added 949,000 net new mobile users in the three months to 31 March 2010, taking its total customer base to 15.40 million, up from 10.64 million at end-1Q09. Meanwhile in its domestic market, Tele2 Sweden’s total mobile customer base remained virtually static year-on-year at 3.38 million, but its mobile broadband subscribers grew from 185,000 in March 2009 to 299,000 a year later, with net intake of 25,000 in the first quarter of 2010 (up from 15,000 twelve months earlier).

Sweden,Tele2, Tele2 Russia, Tele2 Sweden,

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