Tele2 reports Q1 organic sales growth of 7%, EBITDA up 11%

News General Europe 19 APR 2011
Tele2 reports Q1 organic sales growth of 7%, EBITDA up 11%
Tele2 reported first-quarter sales of SEK 9.573 billion, up slightly from SEK 9.527 billion a year earlier. EBITDA rose to SEK 2.457 billion from SEK 2.358 billion, and the margin improved to 26 percent from 25 a year ago. Excluding currency effects, sales were up 7 percent and EBITDA rose 11 percent. Tele2 said the company was performing well, with revenue growth in its main markets and a continued focus on cost reductions. Tele2 added a net 399,000 new customers in Q1, led by over half a million new mobile subscribers in Russia. In the fixed broadband market, the company shed 4,000 customers, and fixed telephony subscribers dropped by 119,0000. The total customer base stood at 31.24 million at the end of March, versus 27.66 million a year earlier. Tele2's net profit for the quarter dropped to SEK 1.23 billion from SEK 1.25 billion, due to higher taxes, while cash flow declined to SEK 1.12 billion from SEK 1.68 billion a year earlier. Capex increased to SEK 939 million from SEK 582 million. Looking forward, Tele2 said it will focus on the growing data services market in Russia, expanding business services in Croatia and the Baltics and the rebranding of its mobile operations in Kazakhstan. The company maintained its annual forecasts for its main countries of Russia, Sweden and Norway and forecast group capex at a maximum SEK 5.5 billion in 2011, excluding any licence payments.

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