TELE2 AB ANNOUNCES CONTINUING REVENUE GROWTH AND THE DOUBLING OF EBITDA SINCE THE SECOND QUARTER - Tele2

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Oct 17, 2001 8:48 AM CET

TELE2 AB ANNOUNCES CONTINUING REVENUE GROWTH AND THE DOUBLING OF EBITDA SINCE THE SECOND QUARTER

  • 55% Annualized increase in proforma Operating Revenue in Q3
  • Third successive EBITDA positive quarter since SEC Acquisition, doubling Q3/Q2 to MSEK 716
  • Tele2's Mobile operations in Sweden reported 57% EBITDA margins in Q3 and 2.4m subscribers (+24%)
  • 35% Annualized increase in proforma subscribers to 13.7 million
  • Tele2 successfully refinanced debt by EUR 1.2 billion 5 year facility
  • MVNO launched in Netherlands
  • GPRS services launched in Sweden and Luxembourg
 
New York and Stockholm - October 17, 2001 - Tele2 AB ("Tele2", "the Group") (Nasdaq Stock Market: TLTOA and TLTOB and Stockhomsbörsen: TEL2A and TEL2B), the leading alternative pan-European telecommunications company, today announced its consolidated results for the third quarter 2001.
 
Tele2 Financial Summary


SEK millions 2001
Q3
2001
Q2
2001
Q1
2000
Q4
Operating Revenue 6,324 6,220 5,619 4,949
Operating Profit (Loss)        
before depreciation and amortization (i) 716 351 2 -356
after depreciation and amortization (ii) -46 -375 -707 -1,006
  1. EBITDA
  2. EBIT
 
Lars-Johan Jarnheimer, President and CEO of Tele2 AB stated:
 
"Tele2 has become the largest pan-European telecoms brand, with a fast growing subscriber base of 13.7 million subscribers in 21 countries. In the third quarter we saw increasing profitability in the Swedish market and continued improving EBITDA in our operations in Central and Southern Europe. In September, there was a resumption of marketing expenditure in the European fixed-line businesses, after a quieter period over the summer months, and this marketing activity is now driving subscriber intake, bringing increased revenue growth whilst EBITDA losses will be further reduced. Our focus continues to be on customer acquisition at a low cost, churn management and operational cost control, which will be assisted by the recent announcement of cuts in interconnection rates. We believe that margin improvements will continue to be made across the Group through to the year end 2001 and beyond."
 
MARKET AREAS SPLIT BY BUSINESS AREAS, PROFORMA (MSEK)


 
OPERATING REVENUE
           
          Proforma Proforma
  2001 2001 2001 2000 2000 2000
  Q3 Q2 Q1 Q4 Q3 Q2
             
Nordic 3,114 3,030 2,921 2,894 2,650 2,502
Baltic and Eastern Europe 292 279 210 138 47 40
Central Europe 1,338 1,471 1,230 1,018 799 623
Southern Europe 1,406 1,415 1,204 882 632 553
Luxembourg 201 189 167 161 153 141
Branded products and services 337 371 361 198 322 134
Adjustments for sales internal -364 -535 -474 -342 -526 -277
Total operating revenue 6,324 6,220 5,619 4,949 4,077 3,716
 
 
OPERATING PROFIT (LOSS) BEFORE DEPRECIATION & AMORTIZATION, EBITDA


          Proforma Proforma
  2001 2001 2001 2000 2000 2000
  Q3 Q2 Q1 Q4 Q3 Q2
Nordic 1,071 837 784 774 684 748
Baltic and Eastern Europe 79 58 59 -23 -9 -1
Central Europe -124 -137 -293 -500 -489 -406
Southern Europe -295 -310 -397 -331 -459 -232
Luxembourg 33 -1 10 -91 -11 -9
Branded products and services -48 -96 -161 -185 -36 -20
Total EBITDA 716 351 2 -356 -320 80
             
             
EBITDA margin            
             
Nordic 34% 28% 27% 27% 26% 30%
Baltic and Eastern Europe 27% 21% 28% -17% -19% -3%
Central Europe -9% -9% -24% -49% -61% -65%
Southern Europe -21% -22% -33% -38% -73% -42%
Luxembourg 16% -1% 6% -57% -7% -6%
Branded products and services -14% -26% -45% -93% -11% -15%
 
Total EBITDA margin
11% 6% 0% -7% -8% 2%
 
 
THE FULL Q3 RESULT WILL BE RELEASED AS ANNOUNCED ON THE OCTOBER 24, 2001.
 
Stockholm, October 17, 2001
Board of Tele2 AB
 
The financial and operating results for the period ended September 30, 2001 have not been subject to specific review by the Company's auditor.
 
Tele2 AB, formed in 1993, is the leading alternative pan-European telecommunications company offering fixed and mobile telephony, data network and Internet services under the brands Tele2, Tango, Comviq and Q-GSM to 13.7 million people in 21 countries. Tele2 operates Datametrix, which specializes in systems integration, 3C Communications, operating public pay telephones and public Internet services; Transac, providing billing and transaction processing service; C³, offering co-branded pre-paid calling cards and IntelliNet and Optimal Telecom, the price-guaranteed residential router device. The Group offers cable television services under the Kabelvision brand name and together with MTG, owns the Internet portal Everyday.com. The Company is listed on the Stockholmsbörsen, under TEL2A and TEL2B, and on the Nasdaq Stock Market under TLTOA and TLTOB.
 
CONTACTS
Lars-Johan Jarnheimer Telephone: + 46 8 562 640 00
President and CEO, Tele2 AB
Hakan Zadler Telephone: + 46 8 562 640 00
CFO, Tele2 AB
Andrew Best Telephone: + 44 (0) 20 7321 5022
Investor enquiries
Patrik Linzenbold Telephone: + 46 8 562 000 53
Press enquiries
 
Visit us at our homepage: http://www.Tele2.com
 

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