Profits down 34% for Tele2 in first quarter

21 Apr 2016

Sweden-based Tele2 Group has reported a 1% year-on-year drop in net sales for the first three months of 2016 to SEK6.45 billion (USD781 million). EBITDA from continuing operations fell 14% to SEK1.23 billion while net profit plummeted 34% to SEK339 million, with results hit by the devaluation of the Kazakh tenge and increased sales and marketing efforts compared to the same period in 2015, particularly in Sweden and the Netherlands. Falls in the number of fixed telephony and broadband customers in the first quarter of 2016 were not cancelled out by a gain at Tele2’s mobile operations, meaning there was a net loss of 9,000 customers over the three months, with the group claiming 16.22 million users across all its businesses at the end of March this year.

Sweden, Tele2