Tele1 Europe Holding AB Announces Second Quarter, 2000 Results

Tele1 Europe Holding AB Announces Second Quarter, 2000 Results Stockholm, Sweden - August 14, 2000 - Tele1 Europe Holding AB ("Tele1 Europe"), (Stockholm Stock Exchange: TEUR, NASDAQ: TEUR), the fast growing, pan-Nordic competitive provider of broadband communications services, today reported second quarter financial and operating results. Commenting on the results, Ivar Strömberg, Tele1 Europe's Chief Executive Officer said: "In the second quarter we continued to achieve rapid growth across the Nordic market. Revenues increased 416% over the same period in 1999, and gross margin continued to improve. Corporate customers increased by 1,546 to 10,830, and directly connected customers by 200 to 1,695. The build out of our local access fiber networks is ahead of plan, with 411 km completed during the quarter, out of a total of 619 km. To date we have successfully connected 40 corporate customers to our own fiber network." Financial Highlights: * Second quarter revenues rose to SEK 223 million (USD 25.2 million), an increase of 34% over first quarter revenues and 416% over the same quarter last year. * Gross margin was 34.7% for the second quarter, an increase of 130 basis points over the first quarter. * EBITDA adjusted, as a percentage of revenues, improved from - 44% to -33% * Revenues from corporate customers rose by 37% in the second quarter compared with the first quarter. * The number of corporate customers rose by 1,546 to 10,830 and directly connected customers rose to by 200 to 1,695 during the quarter. * Strong growth in revenues from data and Internet services in the second quarter to SEK 45 million (USD 5.1 million). Continued strong growth in server hosting revenues. * Switched minutes rose to 472 million in the second quarter. * Exercise of the underwriters over allotment option, in connection with our initial public offering, raised an additional SEK 260 million (USD 29.4 million) in proceeds for the company. * Fully funded business plan with over SEK 6 billion (USD 700 million) in cash. Operational Highlights: * Completed construction of an additional 411 km of local access fiber, out of a total of 619 km. * Deployed 683 km of back-bone fiber. The network now totals 1, 767 km. * Successfully increased number of DSL customers to 1,100. * Connected 14 customers to the Tele1 Europe local access fiber network for a total of 40 corporate customers on owned fiber. * Tele1 Europe was the first Nordic Operator to launch virtual private network services over Internet protocol. * Signed an agreement with Tele Denmark to provide mobile telephony services in Denmark. * Became the first telecommunications operator to sign an agreement with Telenor of Norway for access to unbundled local loops. * Became the first telecommunications operator to sign an agreement with Telia of Sweden for access to both unbundled local loops and central office co-location. * Signed an agreement with Telia and Utfors for the joint construction of a broadband network on the northern coast of Sweden. * Signed an agreement with Coromatic Datasäkerhet AB to construct a state-of- the-art, 1,600 square meters data center in Stockholm. * Signed an agreement with Sweden's Country Administrative Boards to provide telephony services. * Signed an agreement with Bredbandsbolaget to supply fixed telephony services to their customers. Acquisition Highlights: * Signed an agreement to acquire EITele Rogaland, a leading broadband operator in western Norway. The purchase is effective as of July 1, and EITele Rogaland will be consolodated starting in the third quarter 2000. Consideration for the transaction will consist of NOK 100 million (USD 11.7 million) in Tele1 Europe shares, and NOK 617 million (USD 71.9 million) in cash. ------------------------------------------------------------ This information was brought to you by BIT The following files are available for download: The full report The full report