Full Year and Fourth Quarter 2010 Report
Stockholm - Tele2 AB, (Tele2), (NASDAQ OMX Stockholm: TEL2 A and TEL2 B) today announced its consolidated results for the full year and fourth quarter 2010.
"Offering the Best Deal is our business"
"In 2010, we were successful by all our measures. Group revenue increased by 2 percent to SEK 40.2 billion, while EBITDA margin expanded to 26 (24) percent. Adjusted for currency movement revenue increased by 6 percent. Tele2 Russia exceeded 18 million customers and our new regions started to reach profitability; Tele2's value conscious customers began to benefit from the availability of more affordable smart phone handsets; we improved our handset portfolio in Sweden for the new mass market; we acquired BBned, strengthening our position and commitment as a serious long-term player to the Netherlands; lastly, Tele2 Croatia attained EBITDA break-even. Another significant milestone passed during 2010 was the 30 million customer mark and our customer base increased by 16 percent in 2010. We are proud of these results; however we are never satisfied at Tele2. That is why we look forward to making 2011 even more successful."
Financial highlights
Net sales in Q4 2010 increased by 2 percent to SEK 10,115 (9,954) million, excluding one-off items of SEK -6 (-1) million. Adjusted for currency movement net sales increased by 8 percent.
EBITDA in Q4 2010 amounted to SEK 2,488 (2,263) million, equivalent to an EBITDA margin of 25 (23) percent.
Strong customer intake and EBITDA contribution in market area Russia
In Q4 2010, Tele2 Russia added 755,000 (1,149,000) customers in an increasingly competitive market. EBITDA amounted to SEK 899 (695) million.
Significant mobile revenue growth in market area Nordic
Mobile revenue in Sweden grew by 12 percent, as customer demand for smartphones and data services increased during the quarter.
Enhanced net intake in Kazakhstan, driving better customer trends in market area Central Europe & Eurasia
During the quarter, Tele2 in Kazakhstan added 114,000 new customers, a sequential improvement of the total customer stock by 52 percent.
Continued success in the business segment for market area Western Europe
During the quarter, Tele2 Netherlands successfully integrated BBned into its operation, further strengthening its position in the business segment.
The Board of Directors proposes a dividend for 2010 amounting to SEK 27
The Board of Tele2 AB decided to recommend an increase in the ordinary dividend of 56 percent to SEK 6.00 (3.85) per share in respect of the financial year 2010. The Board also decided to recommend an extraordinary dividend of SEK 21.00 (2.00).
The Interim report is available on reports.tele2.com/2010/Q4
Result Meeting
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 Tuesday, February 8, 2011. The conference call will be held in English and also available as audiocast on Tele2's website, www.tele2.com.
Dial-in information
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.
Dial-in numbers:
Sweden: +46 (0)8 505 598 53
UK: +44 (0) 203 043 24 36
US: +1 866 458 40 87
Contacts
Mats Granryd
President & CEO
Telephone: + 46 (0)8 5620 0060
Lars Nilsson
CFO
Telephone: +46 (0)8 5620 0060
Lars Torstensson
Group Director, Corporate Communication
Telephone: + 46 (0)8 5620 0042
Tele2 is one of Europe 's leading telecom OPERATORS, always providing the best deal. We have 31 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 2010, we had net sales of SEK 40.2 billion and reported an operating profit (EBITDA) of SEK 10.3 billion.