Tele2’s Market Area Western Europe is leading the group in business to business services and consumer fixed broadband.
Our current focus areas are:
Netherlands: Grow in mobile and SME. Participate in the upcoming license auction.
Austria: Continue growth in B2B.
Germany: Develop mobile product.
Financial performance is solid, although there is always pressure on topline. Integration costs will be included already in 2011.
Our residential strengths are that we can maximize value in the customer base, we have a solid position in DSL, and we are growing in Triple Play. Put shortly, we put our money where the mouth is.
Our B2B segment is a high margin operation. It provides mission critical services: A majority of the population is using our services, although not being customers.
Our overall objectives in the B2B market are to prioritize topline growth, strengthen our position through the integration of Bbned, and lower costs trough standardization and quality improvement.
Furthermore, we have an opportunity to move from being an MVNO into an MNO, and that opportunity is now. The upcoming auction in Q1 2012 will set the scene till 2030. Reasons for us to pursue this opportunity are several, it allows us to grow long term cash flows and we have strong group experience from the mobile market. Also, the situation is favorable considering the regulatory environment, the current market situation, as well as technology and business models.
Tele2 Austria demonstrates stable performance, where B2B is the sales engine. We see double digit growth in key KPIs – 180% increase in B2B sales intake, and an EBITDA margin from 15% to 21% (H1 2011 vs. H1 2010). Going forward, focus is to maximize value in residential and grow top line in B2B.
Germany is also a solid profit contributor and shows strong operational performance in sustaining profit levels, although facing overall decline in top line.
The current situation is that we have suffering from not having the fixed line regulated. We want to change this by going mobile, and cut the cord to the incumbent for mobile home telephony. This concept was launched in May 2011 and has already been a success.