Tele2 reports revenues of SEK 12.04 billion for Q2, 12.4 percent more than SEK 10.71 billion in Q2 2004. The growth amounted to 11.8 percent excluding currency effects. Central Europe showed a continued strong growth of 66 percent. Growth in the market area Nordic has increased strongly, from 5 percent in Q1 2005 to 12 percent. Growth in Baltic & Russia increased from 16 percent to 23 percent. Revenue in Southern Europe and in UK & Benelux declined by 1 percent, primarily attributable to fixed telephony in the UK, as well as in France and the Netherlands. Tele2’s high fixed market share in France and the Netherlands means that Tele2 is at a point where, until the fixed subscription fee is deregulated, it is increasingly challenging to grow. Operating revenue from ADSL increased by 58 percent to SEK 450 million. Group EBITDA amounted to SEK 1.69 billion compared with SEK 1.67 billion in Q2 2004 and SEK 1.41 billion in Q1 2005. The sequential improvement is largely attributable to Sweden, where mobile telephony has performed well. Profit before taxes amounted to SEK 967 million compared with SEK 1.14 billion in Q2 2004. The financial net includes an internal currency effect of -SEK 107 million, mainly related to transactions between Tele2 Sweden and Tele2 companies with primarily Euro currency. These internal currency differences have not had any cash effect and were previously included in shareholders’ equity. Profit after taxes dropped to SEK 676 million compared with SEK 759 million.
Net customer intake was 722,000 compared to 1,082,000 in Q2 2004. The quarterly intake of fixed telephony and internet customers has decreased from 657,000 to 60,000, while the intake of mobile telephony customers has increased from 427,000 to 666,000. Net intake of ADSL customers was 51,000. The total number of ADSL customers is 668,000, of which more than 450,000 are in Southern Europe. Tele2’s total number of customers is 29.4 million.
