Tele2’s 1Q profits drop

25 Apr 2007

Swedish telecoms group Tele2 has reported that its net profit fell to SEK82 million (USD12 million) in the first three months of 2007, from SEK143 million a year ago due to higher financial and tax charges. Revenues were up 5% year-on-year to SEK12.84 billion, as growth in its mobile and broadband operations helped offset a decline in fixed telephony customers. EBITDA rose 22% to SEK 1.49 billion. Tele2 added a total of 281,000 net new customers in the quarter, down from 617,000 a year earlier. Its gains of 747,000 new mobile customers, 44,000 broadband resale customers and 210,000 direct access and unbundled broadband users were offset by a loss of 720,000 fixed line subscribers. Mobile growth was particularly strong in Russia, while Italy led the increase in broadband customers. Mobile ARPU fell to SEK107 in 1Q 2007 from SEK112 a year ago, fixed telephony ARPU dipped by SEK7 to SEK138 and direct access/unbundled broadband ARPU fell to SEK514 from SEK661. The figures exclude the company’s French fixed line and broadband operations, the sale of which to SFR is subject to EU approval.

Sweden, Tele2