“Our industry is undergoing a pivotal transition which is happening faster than expected and we have to adapt even more quickly to the new conditions that characterise our environment. Because the underlying trends - and our strategy - are unchanged, I keep seeing good opportunities ahead of us.”
Stable net intake for the Group
Net intake was 206,000 (691,000) in the quarter, of which 263,000 (807,000) mobile customers. Net sales amounted to SEK 7,529 (7,649) million, of which mobile services represented SEK 5,481 (5,325), million, corresponding to a growth rate of 3 percent. EBITDA in Q3 2013 amounted to SEK 1,523 (1,771) million, equivalent to an EBITDA margin of 20 (23) percent. EBITDA for mobile services amounted to SEK 990 (1,115) million
Steady operational performance in Tele2 Sweden
Tele2 Sweden added 60,000 (34,000) mobile customers in the quarter. Mobile net sales in Sweden contracted by 1 percent, as a result of lower smartphones sales in Q3 2013. Underlying mobile service revenue (excluding operator revenues and hardware sales) grew by 1 percent in the quarter. The mobile EBITDA contribution in the quarter was SEK 760 (828) million, equivalent to a stable EBITDA margin of 30 (33) percent.
Strong customer intake within mobile for Tele2 Netherlands
Tele2 Netherlands continued its marketing push within the mobile segment, accelerating its customer intake to 56,000 (51,000) customers and taking the total mobile customer base to 640,000. Mobile net sales amounted to SEK 463 (234) million and underlying mobile service revenue grew by 74 percent in Q3 2013. In the quarter, the company secured a long-standing agreement with T-Mobile Netherlands for passive network sharing combined with an extension of the successful MVNO agreement.
Good progress in network roll-out for Tele2 Norway
Tele2 Norway added 5,000 (16,000) mobile customers in the quarter. The network roll-out continued full speed ahead, now covering approximately 72 percent of the population. The underlying mobile service revenue growth was 2 percent in Q3 2013.
Robust revenue growth in Tele2 Kazakhstan
In the quarter, Tele2 Kazakhstan introduced several measures, such as moving from a fixed dealer commission to revenue sharing schemes, in order to attract better quality customers. A short-term negative outcome of the changed commission scheme was lower gross additions in the quarter. Net intake amounted to -14,000 (589,000) and the total customer base was 3,148,000 (3,051,000) on September 30, 2013. Mobile net sales grew by 32 percent in Q3 2013 amounting to SEK 357 (270) million. Underlying mobile service revenue grew by 48 percent. Thanks to improved operational scale and lower interconnect levels, EBITDA losses diminished to SEK -34 (-102) million.
Revised financial guidance
Tele2 has revised its financial guidance for 2014-2015 leading to a deviation from its earlier guidance for the years 2013-2015. As a result of the sale of Tele2 Russia and the revised guidance, dividend for 2013 is expected to be around SEK 4.40. For further information see page 4
The Interim report is available on reports.tele2.com/2013/Q3
Presentation Q3 2013 result
Tele2 will host a presentation - with the possibility to join through a conference call - for the global financial community at 10:00 am CEST (09:00 am BST/04:00 am EDT) on Thursday, October 22, 2013. The presentation will be held in English and also made available as an audiocast on Tele2’s dedicated Q3 2013 website, http://reports.tele2.com/2013/Q3.
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.
Sweden: +46 8 505 564 74
UK: +44 203 364 5374
US: +1 855 753 2230Contacts
President & CEO
Telephone: + 46 (0)8 5620 0060
Telephone: +46 (0)8 5620 0060
EVP, Group Corporate Communication
Telephone: + 46 (0)8 5620 0042
TELE2 IS ONE OF EUROPE'S FASTEST GROWING TELECOM OPERATORS, ALWAYS PROVIDING CUSTOMERS WITH WHAT THEY NEED FOR LESS. We have 15 million customers in 10 countries. Tele2 offers mobile services, fixed broadband and fixed 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 2012, we had net sales of SEK 31 billion and reported an operating profit (EBITDA) of SEK 6 billion