Tele2 Posts Stronger Than Expected 3rd Quarter Results

Sweden based Tele2 has posted a better than anticipated 28% rise in EBITDA to SEK 2.25 billion (US$297 million) for the third quarter of this year. The company recorded a slight rise of four percent in sales to SEK 9.9 billion (US$1.3 billion) and a net profit of SEK 160 million,(US$21.1 million) compared to a loss of SEK 188 million a year earlier.

 Tele2's net debt at September 30, 2008 amounted to SEK 5.2 billion (US$686 million), a decrease of 53 percent.

Harri Koponen, President and CEO of Tele2 commented "The last months, I have been working closely with my management team on how to successfully move forward. Tele2's longer term strategy will remain the same, but we will speed up the execution. Tele2 is now about to exit the phase of realignment, and to enter a new phase of transformation."

THe added that the core markets of Russia, Sweden, Croatia and the Baltic all showed solid customer intake. Tele2 Russia continued to maintain its EBITDA margin of 36 percent, despite an initiated roll-out in 18 new regions including Krasnodar. The Baltic region was negatively affected by the poor economic environment. However, the operations managed to maintain an EBITDA margin at 33 percent. The Croatian operation made further inroad in the consumer segment adding 74,000 new mobile users. The Swedish mobile operations had a robust quarter, adding 127,000 new customers in Q3 2008.

Fixed Telephony operations continued to deliver strong results and profitability. The EBITDA margin was 28 percent and capital expenditures were kept to a minimum in the quarter.

Posted to the site on 22nd October 2008