Busy times at Tele2 as 2Q revenues climb 12%

26 Jul 2005

Pan-European telecoms operator Tele2 has reported second quarter revenues of SEK12.0 billion (USD1.6 billion). The figure – up 12% on the corresponding period twelve months ago – was in no small part due to the 66% rise in sales from its Central European division, comprising operations in Germany, Austria, Poland, Czech Republic and Hungary. EBITDA came in at SEK1.7 billion, above analyst expectations of around SEK1.4 billion. Commenting on the results, the company said: ‘The sequential improvement [in EBITDA] is largely attributable to Sweden, where mobile telephony has performed well’. In total, 722,000 customers were added in the quarter, taking the overall customer base to just shy of 30 million.

After acquiring Austria’s UTA and Tiscali’s operations in Denmark earlier this year, Tele2 has actively sought expansion beyond its relatively saturated home market of Sweden. In the last few months, the company launched mobile services in France after negotiating an MVNO agreement with Orange; signed a contract with neuf telecom with the goal of providing ADSL services over the French telco’s network; and purchased alternative telcos Versatel (based in the Netherlands) and Comunitel (Spain). However, such activity has come at a price: CAPEX for the first six months of 2005 was almost double that of the same period last year (SEK1.4 billion vs SEK768 million).

Sweden, Tele2