Tele2’s Q3 EBITDA drops 14%; sales down 1.6%

22 Oct 2013

Net revenues at Swedish telecoms group Tele2 dropped by 1.6% year-on-year (pro forma) in the third quarter of 2013 to SEK7.529 billion (USD1.173 billion), as 2.9% growth in mobile sales (SEK5.481 billion) was offset by a fall of 7.5% in fixed broadband revenue (SEK1.227 billion) and a 21.7% plunge in fixed telephony turnover (SEK528 million). Net customer intake reached 206,000 in Q3 2013 (compared to 691,000 in 3Q12) as 263,000 net new mobile subscriber additions over the three-month period were partly offset by net reductions of 18,000 broadband and 39,000 fixed telephony customers. At the end of September 2013 Tele2 reported a total of 15.349 million customers across ten countries, up slightly on a pro forma basis from 15.328 million twelve months earlier. Mobile subscribers grew to 13.166 million from 12.635 million a year earlier, while broadband lines stood at 1.050 million (1.138 million) and fixed telephony customers 1.133 million (1.555 million). In its home market of Sweden, Tele2’s mobile user base increased marginally year-on-year from 3.795 million to 3.803 million, as Swedish fixed broadband and telephony lines in service dropped by 14,000 and 165,000 y-o-y respectively to 472,000 and 289,000. In Tele2’s second largest market by subscribers, Kazakhstan, mobile users grew from 3.051 million at the end of September 2012 to 3.148 million a year later.

Tele2’s group EBITDA fell by 14% y-o-y to SEK1.523 billion in July-September 2013 as operating income (EBIT) declined by 34% to SEK225 million and consolidated net income swung from a net profit of SEK283 million in 3Q12 to a net loss of SEK194 million in 3Q13. CAPEX in Q3 2013 amounted to SEK954 million, up from SEK868 million in the year-ago quarter, driven principally by further network expansion, including 4G development, in Sweden, the Netherlands, Norway and Kazakhstan.

Kazakhstan, Sweden, Tele2, Tele2 Sweden (incl. Com Hem), Tele2-Altel (Mobile Telecom Service)