New York and Stockholm - Wednesday, October 23, 2002 - Tele2 AB ("Tele2", "the Group") (Nasdaq Stock Market: TLTOA and TLTOB and Stockholmsbörsen: TEL2A and TEL2B), the leading alternative pan-European telecommunications company, today announced its consolidated results for the third quarter ended September 30, 2002.
- Positive cash flow of MSEK 832 (Q3 2001 MSEK -1,260) after investments
- EBIT of MSEK 632 (Q3 2001 MSEK -41)
- EBT of MSEK 419 (Q3 2001 MSEK -224)
- Fixed line operations in Southern and Central Europe together reached EBITDA breakeven
- Mobile operations for Tele2 in Sweden reported EBIT margin of 50% (EBITDA margin 56%)
Lars-Johan Jarnheimer, President and CEO of Tele2 AB stated:
"In 2002 we set out to show that, as well as continuing to grow faster than our competitors, we could have strongly improving cashflow and reach pre-tax profitability. In each of the first three quarters of 2002 Tele2 has achieved these objectives and by the third quarter the business became profitable post tax as well.
"The mobile businesses have continued to perform strongly with Swedish mobile EBITDA margins of 56%, making it the most efficient mobile operator in Europe. The fixed line operations in continental Europe continued to improve and by the third quarter the Southern and Central market areas together reached EBITDA breakeven, with very strong growth in Southern Europe being driven by the introduction of local calling. The EBITDA margins in our Swedish fixed line operations improved to 24%, continuing to be at the upper end of our 20% to 25% target range. Our focus continues to be on low customer acquisition cost, churn management and operational cost control."
Lars-Johan Jarnheimer Telephone: + 46 8 562 640 00
President and CEO, Tele2 AB
Håkan Zadler Telephone: + 46 8 562 640 00
CFO, Tele2 AB
Andrew Best Telephone: + 44 20 7321 5022