Tele2’s growth led by Russia, Baltics, Croatian mobile ops

23 Apr 2008

Sweden’s Tele2 reported 9% year-on-year growth in consolidated revenues from continuing operations to SEK10.4 billion (USD1.8 billion) and a corresponding 149% rise in net profit to SEK750 million in the first quarter of 2008. In the three months ended 31 March EBITDA increased 13% to SEK 1.76 billion, with mobile EBITDA accounting for most of the growth, improving by 27% to SEK1.39 billion. Net new mobile additions in the quarter reached 417,000, led by Russia, Croatia and the Baltic markets (Estonia, Latvia and Lithuania). However, fixed broadband EBITDA losses widened to SEK176 million from SEK76 million a year earlier, despite net adds of 66,000 subscribers (around half in Tele2’s domestic market) and a turnover increase of 11%. The group’s fixed line telephony operations maintained a positive EBITDA (SEK480 million), although revenues fell 15% as the business lost a net 459,000 voice customers in the three-month period. Tele2 currently offers mobile services in twelve countries, including nine markets in which it has its own network. It also provides fixed broadband services in ten countries (six with its own or jointly owned infrastructure), and fixed telephony in twelve countries. TeleGeography’s GlobalComms database says that during 2007 Tele2 divested units in countries including Denmark, France, Italy, Spain, Portugal, Belgium and Hungary. In October 2007 Tele2 upped its stake in its Croatian unit to 93%, and in January 2008 it increased its ownership of its Dutch operations to 98%. At the end of 1Q 2008 the group completed the sale of its Austrian MVNO operations to Telekom Austria.

Sweden, Tele2