Tele2 Q1 2017 net sales rise 22%, thanks to TDC Sweden inclusion

24 Apr 2017

Sweden-based multinational telecoms operator Tele2 has posted its first quarter 2017 financial results, with the company reporting a 19% rise in mobile end user service revenue to SEK3.725 billion (USD412 million), compared with SEK3.129 billion in the year-ago quarter. Net sales also rose considerably to SEK7.875 billion in the three months ended 31 March 2017, an increase of 22% from SEK6.446 billion in Q1 2016. Net profit was up too in the same time period, amounting to SEK401 million, an 18% rise from SEK339 million in the first quarter of 2016. The firm also reported Q1 2017 EBITDA of SEK1.723 billion, a year-on-year increase of 41%. Tele2 attributes the growth mainly to the inclusion of TDC Sweden, which was acquired in October 2016, as well as higher profitability in its Dutch and Kazakh subsidiaries.

In terms of regional net sales, both Tele2’s Swedish and Kazakh units reported strong growth of 29% and 59% respectively, while its operations in Austria and Germany fared less well, with revenue declines of 3% and 16% respectively recorded for Q1 2017 compared with the previous year. In operational terms, Tele2 accounted for 16.629 million total customers for all its operations across all regions by the end of March 2017, rising from 16.220 million customers in March 2016.