Tele2 still expects group revenues of SEK 25.5-26.5 billion in 2015 and mid single-digit growth in mobile service revenues. In the third quarter, mobile service revenue was up 5 percent, helping to offset a drop in fixed telephony and broadband revenue. Total sales rose to SEK 6.791 billion from SEK 6.584 billion a year ago. EBITDA already started to feel the impact of the spending in the Netherlands as well as the weaker fixed operations and fell to SEK 1.599 billion from SEK 1.682 billion. The margin dropped to 24 percent from 26 a year ago. Net profit nearly halved to SEK 397 million from SEK 726 million, hurt by an impairment on goodwill in Estonia of SEK 197 million, restructuring costs and a revaluation of the put option in Kazakhstan on currency fluctuations.
Capital expenditure was up slightly to SEK 932 million in Q3. The operator maintained its full-year capex at SEK 3.8-4.0 billion. Capital spending in the Netherlands will fall to SEK 100-200 million per quarter from Q4 and continue at that level through 2016, as the network roll-out nears completion, Tele2 said. The new CEO Alison Kirkby, who took office at the start of September, said she will maintain a progressive dividend policy, targeting 10 percent growth in dividends per year.
The number of mobile customers rose by 330,000 in the third quarter, better than the 208,000 a year earlier on growth in Sweden, Kazakhstan and Croatia. Losses in fixed broadband increased to 13,000 customers, and Tele2 lost another 71,000 fixed telephony subscribers in the period. At the end of September, it had in total 14.59 million customers, up from 13.61 million a year ago.
