Interim report January - June 2013
Stockholm - Tele2 AB, (Tele2), (NASDAQ OMX Stockholm: TEL2 A and TEL2 B) today announced its consolidated results for the second quarter 2013.
“Today’s results show good progress in our mobile business, maintaining momentum in gaining customers and growing revenues. Obviously, we are fighting the same headwinds as our peers around Europe – a tough regulatory environment and declining fixed voice and broadband business. Nevertheless, our main mobile operations performed very well with positive underlying services revenue development in Sweden: +4 percent, the Netherlands: + 81 percent, Norway: +13 percent and Kazakhstan: + 64 percent. This is in congruence with our guidance for the coming years ahead.”
Robust net intake for the Group
Net intake was 330,000 (818,000), of which mobile 455,000 (966,000) in the quarter. Net sales amounted to SEK 7,476 (7,787) million of which mobile services represented SEK 5,378 (5,250) corresponding to a growth rate of 2 percent. EBITDA in Q2 2013 amounted to SEK 1,518 (1,519) million, equivalent to an EBITDA margin of 20 (20) percent. EBITDA for mobile services grew by 12 percent to SEK 985 (883) million
Steady margin development in Tele2 Sweden
Mobile net sales in Sweden grew by 1 percent, as customer demand for smartphones and data services continued throughout Q2 2013. Underlying mobile service revenue (excluding interconnect hardware sales) grew by 4 percent in the quarter. The mobile EBITDA contribution in the quarter was SEK 757 (637) million, equivalent to a stable EBITDA margin of 30 percent.
Significant progress within mobile for Tele2 Netherlands
Tele2 Netherlands continued its marketing push within the mobile segment, accelerating its customer intake to 49,000 (32,000) customers and taking the total mobile customer base to 584,000. Mobile net sales amounted to SEK 417 (213) million and underlying mobile service revenue grew by 81 percent in Q2 2013. In the quarter, Tele2 Netherlands started the preparatory work to become an MNO, and selected preferred vendors for radio, core and IMS.
Good progress in network roll-out for Tele2 Norway
Tele2 Norway performed according to plan during the quarter, adding 22,000 (23,000) mobile customers in the quarter. The network roll-out continued full speed ahead, now covering approximately 71 percent of the population. The underlying mobile service revenue growth was 13 percent in Q2 2013.
Good operational performance in Tele2 Kazakhstan
Tele2 Kazakhstan continued to expand its market share and added 309,000 (759,000) new customers in the quarter. Total customer base amounted to 3,162,000 (2,462,000) in June 30 2013. Mobile net sales grew by 46 percent in Q2 2013 amounting to SEK 333 (228) million. Underlying mobile service revenue grew by 64 percent. Thanks to improved operational scale and interconnect levels, EBITDA losses diminished to SEK -52 (-105) million.
The Interim report is available on reports.tele2.com/2013/Q2
Presentation Q2 2013 result
Tele2 will host a presentation - with the possibility to join through a conference call - for the global financial community at 10:30 am CEST (09:30 am BST/04:30 am EDT) on Thursday, July 18, 2013. The presentation will be held in English and also made available as an audiocast on Tele2’s dedicated Q2 2013 website, http://reports.tele2.com/2013/Q2.
Royal Coin Cabinet, Slottsbacken 6, Stockholm
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.
Sweden: +46 8 505 564 74
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US: +1 855 753 2230
President & CEO
Telephone: + 46 (0)8 5620 0060
Telephone: +46 (0)8 5620 0060
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 15 million customers in 10 countries. Tele2 offers mobile services, fixed broadband and fixed 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 2012, we had net sales of SEK 31 billion and reported an operating profit (EBITDA) of SEK 6 billion