Sep 15, 2011 1:46 PM CET
Plenty of Room for Growth
Several particularly good pieces of news are announced from Market Area Central Europe and Eurasia. Financial guidance is provided for Croatia and Kazakhstan, see below.
Main focus in the Baltic countries is to uphold stability and focus. Other current topics in the Baltic countries are technical upgrades (radio, core swap), focus on smartphones and data.
Tele2 Croatia has achieved a free cash flow milestone and is from now on cash flow positive (EBITDA-CAPEX-Change in WC) on a quarterly basis.
EBITDA is estimated to HRK 36 million by 3Q 2011, free cash flow to HRK 37 million. The EBITDA margin for Tele2 Croatia’s operation should reach 20 percent by 3Q 2013.
Since 2008, we have doubled our customer market share, and we are the only player growing on the market.
The objective is to continue the revenue market share growth and improvement of gross margins. Improved brand awareness is important to achieve this, which is why a new marketing strategy was launched in Q2 2011. Marketing KPIs have already been improved notably, showing direct effect in revenue market share and EBITDA growth performance.
Tele2’s youngest country market Kazakhstan is growing rapidly, as the mobile market shows strong growth. Low MoU indicates room for growth, compared to neighboring countries. Tele2 has now launched its six first regions in Kazakhstan, and has already more than one million subscribers and an increasing ARPU and MoU. The goal is to have launched all regions by the end of the year.
We have access to all frequency bands, providing us with great flexibility.
MTR reduction will come down from the current levels.
Long term guidance for Tele2 Kazakhstan: