Tele2’s annual revenues up 16% as Russian turnover grows by 126% in 4Q

17 Feb 2006

Swedish telecoms group Tele2 has posted its full year financial results for 2005, reporting a 16% rise in operating revenues to nearly SEK50 billion (EUR5.3 billion). Net profit fell to SEK2.341 billion (EUR250 million) from SEK3.428 billion (EUR366 million) in 2004, as operating costs rose from SEK38.8 million to SEK46.5 million due to an aggressive mobile and broadband rollout strategy. The group’s total broadband revenues rose by 80% to over SEK3 billion as total high speed customers more than doubled to 1.2 million. In Russia alone, fourth quarter operating revenues increased by 126% year-on-year to SEK379 million, as total fixed, mobile and internet customers in Tele2’s Baltic & Russia region reached 6.358 million, up 71% y-o-y. The company added a net 1.156 million new customers across 23 countries in the last quarter, excluding adjustments for divestments and acquisitions, as strong growth in mobile and broadband user bases offset the loss of fixed line clients.

Russia, Sweden, Tele2