Tele2 profits in line with forecasts; plans summer launch for 3G

Pan-European alternative telco Tele2 posted EBITDA of SEK1.52 billion (USD197.3 million) on sales of SEK10.4 billion (+20%) for the three months to 31 March 2004, broadly in line with consensus forecasts, and announced it was bringing forward its planned launch of 3G services in Sweden by six months – to May or June. The telco, which now operates in 23 countries servicing almost 24 million customers, has built its reputation on a policy of aggressive cost-cutting: it is one of only a few European operators with a profitable fixed line business and little or no debt. Tele2 has seen strong organic growth, particularly in its fixed line and internet access operations, recording 1.6 million subscriber additions in Q1 to lift its total to 23.9 million. In the wake of the profits announcement, Tele2 said it was to launch 3G services in its home market by May or June to counter the threat of competition from rival 3 which launched in mid-2003.