Tele2’s annual EBITDA falls 2% despite 7% revenue gain

5 Feb 2013

Swedish telecoms group Tele2 has posted a 7% increase in consolidated annual net revenues to SEK43.726 billion (USD6.917 billion) in 2012, although its group EBITDA slipped by 2% to SEK10.960 billion, while net profit stood at SEK3.264 billion in the year, down from SEK4.751 billion in 2011. The company said that profitability was below its expectations, pointing to factors including several of its established markets, notably Sweden and Russia, reaching maturity, while margins were narrowed by continued investment in new products and territories to fulfil growth ambitions, particularly in Kazakhstan, Norway and the Netherlands.

In highlights of Tele2’s results, mobile revenue in Sweden grew by 6% in the fourth quarter of 2012 as customer demand for smartphones and data services increased. On the other hand, the Swedish mobile EBITDA contribution in the quarter was SEK748 million, lower than SEK798 million a year earlier due to increasing demand for high-end smartphones resulting in higher subsidies. In Q4 2012 Tele2 Russia added 373,000 net new mobile customers, higher than the 250,000 signed up in 4Q11, resulting in a total customer base of 22.7 million (20.6 million at end-2011). Russian EBITDA grew to SEK1.243 billion in Q4, up from SEK1.209 billion a year ago, although EBITDA margin slipped to 37% (40%). During October-December 2012 Tele2 Kazakhstan added 361,000 net new mobile customers, compared to 249,000 added in the year-ago quarter, giving the unit a total base of 3.4 million, up from 1.4 million a year earlier.

Kazakhstan, Russia, Sweden,Tele2, Tele2 Russia, Tele2 Sweden, Tele2-Altel,

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