Tele2 posts small drop in Q1 results

News General Europe 18 APR 2013
Tele2 posts small drop in Q1 results
Tele2 reported a small drop in first-quarter operating results, while net profit continued to improve. Revenues fell 2 percent to SEK 7.298 billion, and EBITDA was down 1 percent to SEK 1.488 billion. Excluding currency effects, revenues rose 0.2 percent and EBITDA improved 1 percent, Tele2 said. Net profit rose 34 percent to SEK 353 million or 0.70 per share. 

The results are based on continuing operations, excluding the recently sold Russian activities. Cash flow was a negative SEK 1.293 billion, after the payment for new mobile licences in the Netherlands, and capex tripled to SEK 2.133 billion due to the licence fees and network expansions. 

Tele2 added a net 211,000 customers in the three months, led by mobile growth in Kazakhstan and the Netherlands. Mobile now accounts for around 70 percent of the company's revenue. Mobile customers grew by 313,000 in the quarter to a total 13.292 million, while fixed broadband fell by 34,000 to 1.080 million, and fixed telephony was down by 68,000 to 1.285 million. 

The company maintained its mid-term outlook for a CAGR of 5-7 percent in sales and 10-12 percent in EBITDA through 2015, led by strong mobile development in Sweden, the Netherlands, Norway and Kazakhstan.

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