Stockholm-based Tele2 Group has reported a 6% year-on-year increase in net sales for its first quarter to 31 March 2015, to SEK6.51 billion (USD752 million), driven by mobile end-user service revenue, which grew by 10% (partially due to foreign exchange [FX] effects) to SEK3.184 billion. EBITDA increased 5% to SEK1.43 billion. Tele2 said that the main driver behind the growth was improved monetisation of mobile data as customer demand surged. Net profit jumped from SEK475 million in 1Q2014 to SEK2.23 billion this year due to a one-off capital gain of SEK1.8 billion from the sale of Tele2 Norway.
In operational terms the group said it added 235,000 net new customers in the first three months of the year to take its total user base to 13.83 million, including 12.45 million mobile subscribers and 578,000 fixed broadband users. Declines in customer numbers in markets such as Sweden, Lithuania and Germany were offset by strong growth in Kazakhstan, where 428,000 net new subscribers joined its local operation in the first quarter.
Mobile end-user service revenue at Tele2 Sweden grew by more than 5% in Q1 2015 to SEK1.809 billion and Sweden-only mobile EBITDA increased to SEK893 million from SEK745 million a year earlier, positively impacted by accelerated data usage in predominantly the post-paid segment, driven by the introduction of larger data bucket offers. Mobile equipment revenue amounted to SEK584 million (up from SEK467 million in 1Q14), as a result of maintained strong 4G smartphone sales.
Tele2 Netherlands’ mobile end-user service revenue grew by 12% in Q1 2015 to SEK305 million, on the back of continued subscriber growth. Much improved customer intake for Tele2 Kazakhstan – due to new price plans as a reaction to increased competition – and increasing data consumption supported a 46% increase in mobile end-user service revenue (although partially due to FX effects) to SEK315 million in Q1 2015.