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Tele2’s profits dip by a third

20 Jul 2011

Sweden’s Tele2 has reported a 33% year-on-year drop in consolidated group net profit to SEK1.11 billion (USD170 million) in the three months ended 30 June 2011, on net revenues that decreased by 5% to SEK9.99 billion. EBITDA in the second quarter of the year rose by 1% year-on-year to SEK2.71 billion, giving an EBITDA margin of 27%, unchanged in a year. The mobile, fixed line and broadband group’s quarterly net customer intake amounted to 1.05 million in 2Q11, compared to 1.1 million in the same quarter of 2010, with growth driven largely by Tele2’s Russian mobile subsidiary. Net new customer additions in the group’s mobile services division amounted to 1.22 million in April-June 2011, up slightly year-on-year from 1.21 million, of which 18,000 (38,000 in the year-ago quarter) were mobile broadband users. Cellular subscribers at Tele2 Russia and Tele2 Kazakhstan increased by a net 720,000 (1.11 million in 2Q10) and 355,000 (–48,000) respectively. The Swedish firm’s total fixed broadband customer base shrunk by 15,000 subscribers in 2Q11, primarily due to losses in the Netherlands and Sweden. As of 30 June 2011 the total fixed line, mobile and broadband customer base amounted to 32.29 million, up from 28.75 million twelve months earlier. The group announced that it received six new GSM licences in the Far East region of Russia during the period under review, while it also noted that its Kazakhstan unit carried out rebranding under the Tele2 brand in five major regions during the quarter, with all 16 regions of the country scheduled for coverage by the end of the year.

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