Jul 21, 2010 7:00 AM CET
Stockholm - Tele2 AB, (Tele2), (NASDAQ OMX Stockholm: TEL2 A and TEL2 B) today announced its consolidated results for the second quarter 2010.
"We achieved several important milestones during the second quarter of 2010. The availability of more affordable smart phone handsets contributed to the creation of a mass market, benefiting Tele2's more value-oriented customers; we improved the mix of our handset portfolio in Sweden; Tele2 Russia exceeded 16 million customers and the new regions started to reach profitability; and Tele2 Croatia attained EBITDA break-even. This positive momentum will take Tele2 to the next level", comments Lars Nilsson, CFO & Interim President and CEO of Tele2 AB.
Net sales in Q2 2010 amounted to SEK 9,967 (9,912) million, excluding one-off items of SEK 588 (-59) million. Including one-off items, net sales amounted to SEK 10,555 (9,853) million. EBITDA amounted to SEK 2,687 (2,446) million, equivalent to an EBITDA margin of 27 (25) percent.
First two new Russian regions EBITDA break-even on a monthly basis, driving best ever operational performance in the market area
In Q2 2010, Tele2 Russia added 1,113,000 (478,000) customers. During the quarter, EBITDA amounted to SEK 944 (644) million and the first two new regions reached EBITDA break-even on a monthly basis, nine months after commercial launch.
Accelerated mobile revenue growth in market area Nordic
Mobile revenue in market area Nordic grew by 4 percent, led by Tele2 Sweden's push into the smart phone segment, and as a result of higher take-up rate of data subscriptions.
Stable cash flow contribution and signs of market stabilization in market area Central Europe & Eurasia
During the quarter, Tele2 Croatia reached a very important milestone by reaching EBITDA break-even for the first time. In the Baltic region, general market conditions started to show signs of stabilization, supporting Tele2's mobile operations in the countries.
Further success in the corporate segment for market area Western Europe
In the corporate segment, Tele2 Netherlands was successful in prolonging existing accounts, thereby extending the binding period of several large customers.
The Interim report is available on reports.tele2.com/2010/Q2
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, July 21, 2010. The conference call will be held in English and will also be made available as an audiocast on Tele2's dedicated Q2 2010 website, reports.tele2.com/2010/Q2.
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 (0)8 505 598 53
UK: +44 (0) 203 043 24 36
US: +1 866 458 40 87
Lars Nilsson, CFO and Interim President & CEO
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 29 million customers in 11 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 2009, we had net sales of SEK 39.5 billion and reported an operating profit (EBITDA) of SEK 9.4 billion.