Tele2 AB :Interim report January - June 2012 - Tele2

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Jul 19, 2012 7:00 AM CET

Tele2 AB :Interim report January - June 2012

Stockholm - Tele2 AB, (Tele2), (NASDAQ OMX Stockholm: TEL2 A and TEL2 B) today announced its consolidated results for the second quarter 2012.

CEO comment:

"We noted promising financial indications during Q2 in what remain challenging market conditions. This quarter's record customer intake of 1,511,000 again reflects sustainable interest in our services and provides a good basis for earnings growth in the second half of the year. It also demonstrates that our company enjoys diversified growth: Tele2 Kazakhstan has now surpassed Tele2 Russia when it comes to the rate of increase of customers. Our strong financial position means that we are able to pursue our growth strategies without compromising service. We continue to exploit the opportunities in the widespread move from voice to data in a profitable manner. Maintaining our focus on developing an ever more valuable business model for data services is central to strategy. Consequently, we will manage the migration from prepaid to postpaid services with innovative pricing models designed to keep and develop our loyal customer base."

Financial highlights

Net sales amounted to SEK 11,064 (10,078) million corresponding to a growth of 10 percent in the quarter. EBITDA in Q2 2012 amounted to SEK 2,715 (2,809) million, equivalent to an EBITDA margin of 25 (28) percent.

Strong customer intake in market area Russia

In Q2 2012, Tele2 Russia added 693,000 (720,000) customers leading to a total customer base of 21.6 (19.7) million. EBITDA amounted to SEK 1,199 (1,115) million, equivalent to an EBITDA margin of 37 (39) percent.

Sustained mobile revenue growth in market area Nordic

Mobile revenue in Sweden grew by 6 percent, as customer demand for smartphones and data services increased further during the quarter. This trend was enhanced by a temporary marketing campaign during the months of March and April. As a result of increased marketing spend, the EBITDA margin was negatively affected. Tele2 Norway performed well during the quarter, with increased focus on moving traffic on to its own network, leading to robust EBITDA margin development.

Significant operational progress in market area Central Europe & Eurasia

During the quarter, Tele2 Kazakhstan completed the roll-out and commercial launch in the country, resulting in a customer intake of 759,000 (355,000). The total customer base amounted to 2.5 (0.7) million. The Baltic countries drove further cost cutting in the quarter, maintaining their firm EBITDA margin development.

Robust margin development in market area Western Europe

Tele2 Netherlands maintained a stable EBITDA margin compared to same period last year, despite tough market conditions in the consumer and business segments. Both Tele2 Austria and Tele2 Germany continued their stable operational development thanks to a combination of innovative product offers and tight cost control.
       
The Interim report is available on reports.tele2.com/2012/Q2

Telephone conference

Tele2 will host a conference call, with an interactive presentation, for the global financial community at 10.00 am CET (09.00 am UK time/04.00 am NY time) on Thursday, June 19, 2012. The conference call will be held in English and also made available as an audiocast on Tele2's dedicated Q2 2012 website, reports.tele2.com/2012/Q2.

Dial-in information:
To ensure that you are connected to the conference call, please dial in a few minutes before the start of the conference call to register your attendance.

Dial-in numbers:
Sweden: +46 8 505 598 53
UK: +44 203 043 24 36
US: +1 866 458 40 87

Contacts

Mats Granryd
President & CEO
Telephone: + 46 (0)8 5620 0060

Lars Nilsson
CFO
Telephone: +46 (0)8 5620 0060

Lars Torstensson
Director, Group Corporate Communication
Telephone: + 46 (0)8 5620 0042

Tele2 is one of Europe 's leading telecom OPERATORS, always providing the best deal. We have 36 million customers in 11 countries. Tele2 offers mobile services, fixed broadband and telephony, data network services, cable TV and content services. Ever since Jan Stenbeck founded the company in 1993, it has been a tough challenger to the former government monopolies and other established providers. Tele2 has been listed on the NASDAQ OMX Stockholm since 1996. In 2011, we had net sales of SEK 41 billion and reported an operating profit (EBITDA) of SEK 11.2 billion.

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