Tele2 posts big drop in profits

25 Apr 2005

Swedish telecoms group Tele2 today reported a 29% drop in net income for the first quarter, posting profits of SEK483 million (EUR52.7 million) compared to SEK678 million a year earlier. The company attributed the slide to investment of SEK100 million in a new wholesale fixed line service, as well as costs incurred through integrating a new acquisition, Austrian operator UTA. Tele2 also added significantly fewer new customers in the quarter – 825,000, compared to 1.57 million a year earlier and 1.38 million in Q4 2004. Nonetheless, Tele2 Group’s Q1 2005 operating revenues increased by 12% to SEK11.579 billion (EUR1.264 billion).

Sweden, Tele2