Tele1 Europe Holding AB Announces First Quarter, 2001 Results

Tele1 Europe Holding AB Announces First Quarter, 2001 Results Tele1 Europe Reports 151% Revenue Growth over the First Quarter 2000, 15% Revenue Growth over the Fourth Quarter, 673 Sites Connected to its Fiber Network and 3,087 Directly Connected Corporate Customers. Stockholm, Sweden - May 15, 2001 - Tele1 Europe Holding AB ("Tele1 Europe"), (OM Stockholm Stock Exchange: TEUR, NASDAQ: TEUR), the fast growing, pan-Nordic competitive provider of broadband communications services, today reported first quarter financial and operating results. Commenting on the results, Ivar Strömberg, Tele1 Europe's Chief Executive Officer said: "The first quarter of 2001 shows strong evidence that we are continuing to solidify our position as the leading alternative broadband operator for corporate customers in the Nordic region. Revenues increased 151% over the same period in 2000 and EBITDA continued to improve as a percentage of revenue. During the quarter, we added 893 corporate customers for a total of 13,873, and directly connected customers rose by 629 to 3,087. As of 31 March 2001 we had completed an additional 57 km of local access fiber, for a total of 1,761 km and had 673 sites connected to our fiber network. Finally, with approximately SEK 4.2 billion (USD 408 million) in cash and cash equivalents, we have sufficient reserves to fully fund our business plan and make selective acquisitions." Financial Highlights: ·First quarter revenues rose SEK 55 million (USD 5 million) to SEK 417 million (USD 40 million), a 15% increase over the fourth quarter revenues and 151% over the same quarter last year. ·Gross margin was 35.6% for the first quarter versus 33.4% for the first quarter of 2000. ·Adjusted EBITDA, as a percentage of revenues, improved from - 35% to -26%. The Company is still on track to reach adjusted EBITDA break-even in second quarter 2002. ·Direct corporate revenues 1) represented 39.4% of total revenue in first quarter, compared with 41.7% in the fourth quarter of 2000. ·Revenues from data and internet services 2) totaled SEK 100 million (USD 10 million) or 24% of total revenue. ·Switched minutes rose 66.5% to 1,332 million. ·In January 2001, Tele1 Europe successfully completed a Euro 175 million 12?% Senior Notes offering. The proceeds of the offering will be used to acquire complementary companies and fund network expansion. ·Fully funded business plan with approximately SEK 4.2 billion (USD 408 million) in cash and cash equivalents. Operational Highlights: ·At the end of the quarter, 673 sites were connected to our fiber network in all four countries. ·The number of corporate customers rose by 893 to 13,873. Directly connected customers totaled 3,087, an increase of 629, and directly connected sites totaled 5,179, an increase of 1,443. ·Increased the number of sites connected through DSL by 672, which includes 100 sites added as a result of the FastCom acquisition. The total number of DSL sites increased from 1,485 3) , to 2,157. ·The number of dedicated hosting customers totaled 130 4) . ·Completed construction of an additional 57 km of local access fiber, for a total of 1,761 km. ·Deployed 665 km of back-bone fiber, for a total of 7,307 km. ·Successfully increased the number of active IP/VPN sites to approximately 600. ·Tele1 Europe's wholly owned subsidiary WinEasy opened a state- of-the-art 2,000 square meter data center in Lidingö, Stockholm. Acquisition Highlights: · Tele1 Europe acquired FastCom AS, a leading supplier of internet and data communication solutions to businesses, based in Kristiansand, Norway. Tele1 Europe acquired 100% of FastCom for NOK 40 million (USD 4 million) and consolidated FastCom's results since the date of acquisition. FastCom revenues in Q1 2001 amounted to approximately SEK 4 million (USD 0.4 million). Subsequent Events: · In May, Tele1 Europe entered into an agreement to acquire part of the Swedish fixed data and telephony operations of Sonera, the Finnish incumbent operator, for approximately SEK 200 million (USD 19 million) in cash. In April, Tele1 Europe Holding AB proposed changing its name to Song Networks Holding AB. The name change must be approved at the Annual General Meeting, on May 16, 2001. Direct revenues include On net revenues, hosting revenues and revenues from leasing capacity to corporates. Revenues from data and internet services include hosting revenues and revenues from leasing capacity to corporates. Revised as a result of 400 sites being reported as DSL rather than leased line during 2000. Please refer to table on page 2, and note 9 , for further information. · ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/05/15/20010515BIT00550/bit0002.doc The full report http://www.bit.se/bitonline/2001/05/15/20010515BIT00550/bit0002.pdf The full report