Tele2 NL 4Q10 results improve on higher post-paid, triple-play margins

9 Feb 2011

Dutch altnet Tele2 Netherlands has reported an improved financial performance for the fourth quarter ended 31 December 2010, buoyed by increased post-paid and triple-play margins, Telecompaper reports. Tele2 NL, which concluded the takeover of fellow broadband player BBned on 6 October last year, said the inclusion of the unit’s results for most of the period under review helped further bolster its business market share, bringing in 11,000 business and 64,000 residential customers. However, the effects of a reorganisation at BBned in Q4 adversely impacted consolidated EBITDA, it added. Tele2 NL’s fourth-quarter revenue fell 1% year-on-year to EUR180.1 million (USD245.4 million) due to the impact of currency fluctuations. Excluding currency effects, the operator said it would have reported 11% growth in Q4. EBITDA rose 11% y-o-y to EUR49.4 million; EBITDA margin was 27.5%. Quarterly CAPEX fell 21% to EUR13.8 million.

Tele2 NL said its mobile user base contracted by 13,000 to 338,000 in the October-December period, although a focus on post-paid subscribers helped double its margin to 27.1%. Mobile sales dipped 9.5% year-on-year to EUR23.9 million, while EBITDA climbed to EUR6.5 million. In the broadband segment, Tele2 NL lost a net 3,000 customers to end December with 510,000 although with demand for triple-play bundles outstripping other products, the telco saw a healthy improvement in broadband ARPU. Revenue from internet services climbed 3.6% year-on-year to EUR103.6 million and EBITDA was up 15% at EUR29.6 million. The company said its business services unit added new users but suffered from price competition. As a result it lost a total of 233,000 subscribers, reducing its total to 17,000, as sales slumped 27% to EUR27.2 million. EBITDA rallied however, climbing 43% y-o-y to EUR5.5 million. Wholesale sales were up to EUR24.6 million, yielding EBITDA of EUR7.8 million (+31%).

For the full year, Tele2 NL broke down its business unit contributions as follows: fixed retail market (46% of sales), large corporate market (22%), mobile (15%), wholesale (10%) and SMEs (7%).

Netherlands, Tele2 NL (part of T-Mobile Netherlands)