Interim Report First Quarter 2014
CEO comment:
“Our focus for 2014 is clear. The Netherlands and Kazakhstan are building a mobile business for the future, contributing strongly to overall growth. Sweden stands as the role model when it comes to creating a profitable and data centric business model.”
Financial Highlights
Strong mobile end-user service revenue growth for the Group
The Group’s net sales and EBITDA amounted to SEK 7,108 million and SEK 1,381 million respectively. In the quarter, mobile end-user service revenue grew by 3 percent amounting to SEK 3,600 (3,496) million. This trend was driven by positive usage of mobile data, compensating less revenue from mobile voice and SMS.
Robust operational performance in Tele2 Sweden
Mobile end-user service revenue in Sweden grew by 3 percent Q1 2014, driven by increased usage in the postpaid segment. The mobile EBITDA contribution in the quarter was SEK 745 (732) million.
Maintained positive customer intake within mobile for Tele2 Netherlands
Tele2 Netherlands continued to gain market share by adding 47,000 (57,000) customers and taking the total mobile customer base to 741,000 (535,000). Mobile end-user service revenue amounted to SEK 273 (197) million growing by 39 percent in Q1 2014.
Strategic review of Tele2 Norway
Tele2 Norway had a net intake of 14,000 (-4,000) in the quarter, leading to a total customer base of 1,132,000. In Q1 2014, One Call became the third largest mobile operator in Norway in terms of customers, reaching 423,000 users. A strategic review of the Norwegian business was initiated, following the result of the license auction in December 2013.
Positive customer intake for Tele2 Kazakhstan
Tele2 Kazakhstan’s work to improve its commission structure since the previous quarters yielded a positive sequential customer intake of 20,000 compared to-393,000 in Q4 2013. End-user service revenue grew by 11 percent in Q1 2014 amounting to SEK 216 (195) million. Thanks to improved operational scale and lower interconnect levels, EBITDA amounted to SEK 1 (-45) million, the first positive quarter since commercial launch.
Divestment of Swedish residential cable and fiber operations
On October 23, 2013 Tele2 announced the sale of its Swedish residential cable and fiber operations to Telenor for SEK 793 million. The sale was completed on January 2, 2014 after approval by regulatory authorities and the capital gain in Q1 2014 amounted to SEK 257 million.
The Interim Report is available on www.tele2.com
Presentation Q4 2013 result
Tele2 will host a presentation with the possibility to join through a conference call, for the global financial community at 10:00 am CEST (09:00 am BST/04:00 am EDT) on Friday, April 25, 2014. The presentation will be held in English and also made available as an 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 8 505 564 74
UK: +44 203 364 5374
US: +1 855 753 2230
Contacts
Mats Granryd, President & CEO, Telephone: + 46 (0)8 5620 0060
Lars Nilsson, CFO, Telephone: +46 (0)8 5620 0060
Lars Torstensson, EVP Group Corporate Communication, Telephone: + 46 (0)8 5620 0042
TELE2 IS ONE OF EUROPE'S FASTEST GROWING TELECOM OPERATORS, ALWAYS PROVIDING CUSTOMERS WITH WHAT THEY NEED FOR LESS. We have 14 million customers in 10 countries. Tele2 offers mobile services, fixed broadband and fixed telephony, data network services 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 2013, we had net sales of SEK 30 billion and reported an operating profit (EBITDA) of SEK 6 billion.