Tele2 posts 2Q net loss; EBITDA up

Swedish telecoms group Tele2 said its second quarter EBITDA rose 40% year-on-year to SEK1.737 billion (USD260 million), boosted by a sharp increase in profitability in its Baltic & Russia operations, narrowing losses in southern Europe and stronger results at its Benelux division. However, it recorded a net loss of SEK501 million for the quarter ended 30 June, versus a net profit of SEK246 million a year earlier. Profits were hurt by some SEK520 million in one-time charges related to the sale of its pre-paid calling card businesses, as well as charges for tax assets, mainly in Germany. Revenues in the three-month period increased by 6% year-on-year to SEK13.11 billion, from SEK12.36 billion in the same period of 2006, driven by growth in its Baltics & Russia and Nordic divisions. Tele2 added 382,000 net new customers in the quarter, as 931,000 new mobile subscribers and 201,000 additional LLU fixed line and broadband users offset a loss of 770,000 fixed telephony resale customers. Combined average monthly revenue per user (ARPU) fell to SEK142 from SEK145, dropping across all four of Tele2’s product categories.