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Tele2 AB net sales grew by 6 percent

Staff writer ▼ | April 21, 2015
Tele2 AB announced its consolidated results for the first quarter 2015. In the quarter net sales grew by 6 percent to SEK 6,511 (6,152) million.
Tele2 AB
Tele2   Mobile end user service revenue, grew by 10 percent
That was driven by strong performance in mobile end user service revenue, which grew by 10 percent (partially due to FX effects), and amounted to SEK 3,184 (2,904) million. The main driver behind the development was improved monetization of mobile data as customer demand surged in Q1 2015.

EBITDA amounted to SEK 1,428 (1,362) million, supported by the strong net sales development.

Mobile end-user service revenue in Tele2 Sweden grew by more than 5 percent in Q1 2015 and EBITDA increased to SEK 893 (745) million, both positively impacted by accelerated data usage in predominantly the postpaid segment, driven by the introduction of larger data bucket offers. Mobile equipment revenue amounted to SEK 584 (467) million, as a result of maintained strong 4G smartphone sales.

Tele2 Netherlands continued to gain market share by adding 21,000 (47,000) customers and taking the total mobile customer base to 834,000 (741,000). Mobile end-user service revenue amounted to SEK 305 (273) million, growing by 12 percent in Q1 2015. EBITDA amounted to SEK -106 (-36) million, affected by higher national roaming costs due to rapidly growing data consumption and further investments to build the new MNO organization.

Customer intake in Tele2 Kazakhstan increased to 428,000 (20,000) in Q1 2015, due to new price plans as a reaction to increased competition. Improved quality of customer intake and increasing data consumption supported the improved top-line development.

As a result, Mobile end-user service revenue grew by 46 percent (partially due to FX effects) in Q1 2015, amounting to SEK 315 (216) million despite being impacted by increased competitive pressure. Due to increased acquisition costs driven by a strong customer intake, EBITDA amounted to SEK 0 (1) million.

In Q1 2015, the sale of Tele2 Norway was completed after approval by regulatory authorities. The cash proceeds from the transaction was SEK 4.7 billion and resulted in a capital gain of SEK 1.8 billion.

A group-wide program focused on increasing productivity was launched in Q4 2014. The program will build over 3 years and reap full benefits of SEK 1 billion per annum starting in 2018. The investment required will be SEK 1 billion, phased over 3 years. In the quarter EBIT was impacted by SEK -14 million by the program.