Tele2’s Q2 net profit jumps 46%, Croatian unit breaks even

Swedish mobile, fixed line and broadband group Tele2’s second-quarter revenues rose slightly to SEK9.97 billion (USD1.35 billion) from SEK9.91 billion a year earlier, although the figure excluded a one-time gain of SEK588 million from the settlement of a legal dispute with Deutsche Telekom, which contributed to a net profit of SEK1.64 billion in the three months ended 30 June 2010, up 46% from SEK1.13 billion in the same period of 2009. EBITDA in 2Q10 rose to SEK2.69 billion from SEK2.45 billion in the year-ago quarter, raising the EBITDA margin by two percentage points to 27%. Group CAPEX was cut to SEK793 million in the three-month period from SEK1.09 billion a year earlier. Operational highlights included Tele2 Russia exceeding 16 million mobile customers by added 1.11 million net new subscribers in the second quarter. Mobile revenues in Tele2’s Nordic business area grew by 4% year-on-year, driven by higher take-up of smartphones, especially in Sweden, and increased volumes of data subscriptions. Also during the quarter, Tele2 Croatia reached EBITDA break-even for the first time.