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Mobile & Wireless

Tele2 Estonia net sales down to SEK 139 mln in Q1

Thursday 18 April 2013 | 12:29 CET | News
Tele2 Estonia saw its mobile operations' net sales in Q1 drop to SEK 139 million from SEK 196 million in the year-earlier period. EBITDA for the mobile segment fell to SEK 35 million from SEK 54 million in Q1 2012. The revenue and profitability development was negatively impacted by interconnect regulations as well as price war market conditions. The impact from lowered interconnect negatively affected net sales by approximately SEK 36 million and EBITDA by SEK 5 million. The operator's sales from fixed operations rose to SEK 3 million from SEK 2 million in the year-earlier period, while revenues from other operations grew to SEK 14 million from SEK 10 million.

The total customer base was 505,000, that is 1,000 less than in the previous quarter. Tele2 Estonia continued to execute its price leadership strategy and managed to grow its residential segment customer base despite growing price pressure in the market during the quarter. Price competition moved into the business and prepaid segments and is likely to persist during the coming quarters. Tele2 Estonia made additional cost cuts and improved the efficiency of its operation, as synergy effects between Tele2 and Televork started to show. Tele2 Estonia will continue to upgrade its network in order to enhance its efficiency and better serve the customers’ needs.



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Categories: Mobile & Wireless
Companies: Tele2 / Tele2 Estonia
Countries: Estonia
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