TELE2 AB ANNOUNCES MSEK 616 POSITIVE CASH FLOW IN THE FOURTH QUARTER AND CUSTOMER INTAKE OF 3.4 MILLION WITH 54% INCREASE IN REVENUE FOR THE 12 MONTHS ENDED DECEMBER 31, 2001
- 54% increase in pro forma Operating Revenue for 2001
- Tele2 Sweden's mobile operations reported 54% EBITDA margin in 2001 and revenues up 20%
- 15 million subscribers by year end, an increase of 29%, mobile subscribers up 45%
- EBITDA MSEK 1,699 (pro forma 2000 MSEK -371)
- Tax payable reduced by SEK 3.1 billion following restructuring
- Balance sheet further strengthened with EUR 1.2 billion 5 year facility
New York and Stockholm - February 19, 2002 - 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 fourth quarter and twelve months ended December 31, 2001.
Tele2 Financial Summary
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|Operating Profit (loss)|
|before depreciation and amortization (i)|| |
|after depreciation and amortization (ii)|| |
|Profit (loss) after financial items (iii)|| |
|Profit (loss) after taxes (iv)|| |
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(i) EBITDA (ii) EBIT (iii) EBT (iv) see Note 4
Lars-Johan Jarnheimer, President and CEO of Tele2 AB stated:
"With more than 15 million customers in 21 countries Tele2 is the largest pan-European telecoms brand, and our strong growth in subscribers and revenue over the last twelve months illustrates how Tele2 as a price leader has been able to maintain growth when many of our competitors have seen sales growth weaken. The last twelve months has also seen an improvement in Tele2's profitability as we have reached critical mass in key markets across Europe and we are confident that the European fixed line businesses will reach EBITDA breakeven in 2002 in line with plans to do so within three years from launch in each country. For this reason our focus continues to be on customer acquisition at a low cost, churn management and operational cost control, and these internal actions will be complemented by the actions of Regulators across Europe who continue to cut interconnection rates. Therefore we expect that margin improvements will continue to be made."
FINANCIAL AND OPERATING HIGHLIGHTS
(The figures shown in parenthesis correspond to the comparable periods in 2000 and all negative amounts are distinguished with a minus sign).
Financial highlights 2001
- Tele2's operating revenues were MSEK 25,085 for the twelve months ended December 31, 2001, an increase of 54% over the pro forma MSEK 16,243 reported in the same period last year.
- The total number of subscribers at December 31, 2001 was 15.0 million, an increase of 29%.
- EBITDA was MSEK 1,699 (-371). EBITDA was SEK 633 in the fourth quarter a strong improvement against the previous year, (Q4 2000: SEK -379). The fourth quarter result was reduced in comparison to the third quarter by the higher sales and marketing costs associated from the large intake of new customers.
- Tele2 Sweden's operating revenues were MSEK 9,060 for the twelve months ended December 31, 2001 an increase of 14% over the same period last year. EBITDA was MSEK 3,773 (2,728),an increase of 38%. The EBITDA margin was 42% in 2001 as against 34% in 2000. Mobile telephony revenues were up 20% to MSEK 5,720 with EBITDA up 41% to MSEK 3,111 giving a mobile margin of 54%.
- In the fourth quarter there was a restructuring within the former SEC Group and one of the effects of this reorganization was that tax payable by the Group will be reduced by SEK 3.1 billion.
Operating highlights, 2001
- In October, Tele2 announced a review of its product range making MSEK 80 cost savings per annum
- Tele2 launched GPRS in Sweden in October.
- Tele2 announced partnership with the Post Office in November to provided fixed telephony services in UK
- On December 1, 2001, Tele2 acquired FORA Telecom the mobile business of Millicom International Cellular
- Tele2 reached agreement with Viag Interkom in Germany to launch an MVNO following on from the successful launch of an MVNO in the Netherlands in August.
- On December 31 Tele2 purchased the remaining part of Levicom Broadband.
First, second and third quarters:
- In January, Tele2 divested its 37% holding in Transcom Worldwide S.A to Industriforvaltnings AB Kinnevik
- In March, Tele2 signed agreement to form a jointly owned UMTS- network company with Telia
- In August, Tele2 finalised a 5 year new amortizing senior debt facility of Euro 1.2 billion
- In September, Tele2 Norge acquired Enitel AS's private and corporate fixed telephony and dial-up internet subscribers
Lars-Johan Jarnheimer Telephone: + 46 8 562 640 00
President and CEO, Tele2 AB
President and CEO, Tele2 AB
Hakan Zadler Telephone: + 46 8 562 640 00
CFO, Tele2 AB
CFO, Tele2 AB
Andrew Best Telephone: + 44 20 7321 5022
Patrik Linzenbold Telephone: + 46 8 562 000 53