"Tele2's future growth lies within our emerging market footprint, with a strong emphasis on Russia."
"In its initial phase, the roll-out of new regions in Russia has shown a development in line with or better than our own expectations. A positive sign is that our more mature regions have experienced a prolonged customer growth and expanded operational profitability."
During Q3 2009, net sales amounted to SEK 9,763 (9,520) million, an increase of 3 percent, while EBITDA increased by 6 percent to SEK 2,375 (2,240) million.
Solid customer intake in Sweden
Tele2 Sweden's mobile operations added 107,000 (127,000) customers in Q3 2009, of which 48,000 (28,000) customers were postpaid mobile voice and postpaid mobile internet customers.
Early success in roll-out of new regions in Russia
7 of the new regions were launched in Russia during Q3 2009, leading to a total customer intake of 1,100,000 (449,000). Despite a strong emphasis on rolling out new mobile operations, the total EBITDA margin of Tele2 Russia amounted to 31 (36) percent.
Stable operational development in the Baltic region and in Croatia
Tele2's Baltic operations gained customer market share in Q3 2009 adding 28,000 customers in spite of a difficult economic environment. In Croatia, Tele2 improved the operational performance and is aiming for EBITDA break-even by 2H 2010.
Strong operational contribution from Western Europe
Tele2 Netherlands prolonged the expansion of its EBITDA margin and delivered 26 (21) percent in Q3 2009. In Austria, the restructuring resulted in good operational progress in the quarter with an EBITDA contribution of SEK 102 (24) million. In Q4 2009, Tele2 sold its French operations for SEK 575 million.
The Interim report is available on www.tele2.com.
Interim result conference call
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 Wednesday, October 21, 2009. The conference call will be held in English and also available as audiocast on Tele2's website, www.tele2.com.
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 8 505 598 53
UK: + 44 203 043 24 36
US: + 1 866 458 40 87
You will also be in a position to listen to the conference call afterwards:
Replay number until November 4, 2009:
Sweden: +46 8 506 269 49
Harri Koponen, President and CEO
Telephone: +46 (0)8 5620 0060
Lars Nilsson, CFO
Telephone: +46 (0)8 5620 0060
Lars Torstensson, Investor Relations
Telephone: + 46 (0)8 5620 0042
TELE2 IS ONE OF EUROPE'S LEADING TELECOM OPERATORS, ALWAYS PROVIDING THE BEST DEAL. We have 26 million customers in 10 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 2008, we had net sales of SEK 38.3 billion and reported an operating profit (EBITDA) of SEK 8.2 billion.