TELE2 AB ANNOUNCES CONTINUING REVENUE GROWTH AND THE DOUBLING OF EBITDA SINCE THE SECOND QUARTER
- 55% Annualized increase in proforma Operating Revenue in Q3
- Third successive EBITDA positive quarter since SEC Acquisition, doubling Q3/Q2 to MSEK 716
- Tele2's Mobile operations in Sweden reported 57% EBITDA margins in Q3 and 2.4m subscribers (+24%)
- 35% Annualized increase in proforma subscribers to 13.7 million
- Tele2 successfully refinanced debt by EUR 1.2 billion 5 year facility
- MVNO launched in Netherlands
- GPRS services launched in Sweden and Luxembourg
New York and Stockholm - October 17, 2001 - Tele2 AB ("Tele2", "the Group") (Nasdaq Stock Market: TLTOA and TLTOB and Stockhomsbörsen: TEL2A and TEL2B), the leading alternative pan-European telecommunications company, today announced its consolidated results for the third quarter 2001.
Tele2 Financial Summary
| SEK millions | 2001 Q3 | 2001 Q2 | 2001 Q1 | 2000 Q4 |
| Operating Revenue | 6,324 | 6,220 | 5,619 | 4,949 |
| Operating Profit (Loss) | ||||
| before depreciation and amortization (i) | 716 | 351 | 2 | -356 |
| after depreciation and amortization (ii) | -46 | -375 | -707 | -1,006 |
- EBITDA
- EBIT
Lars-Johan Jarnheimer, President and CEO of Tele2 AB stated:
"Tele2 has become the largest pan-European telecoms brand, with a fast growing subscriber base of 13.7 million subscribers in 21 countries. In the third quarter we saw increasing profitability in the Swedish market and continued improving EBITDA in our operations in Central and Southern Europe. In September, there was a resumption of marketing expenditure in the European fixed-line businesses, after a quieter period over the summer months, and this marketing activity is now driving subscriber intake, bringing increased revenue growth whilst EBITDA losses will be further reduced. Our focus continues to be on customer acquisition at a low cost, churn management and operational cost control, which will be assisted by the recent announcement of cuts in interconnection rates. We believe that margin improvements will continue to be made across the Group through to the year end 2001 and beyond."
MARKET AREAS SPLIT BY BUSINESS AREAS, PROFORMA (MSEK)
| OPERATING REVENUE | ||||||
| Proforma | Proforma | |||||
| 2001 | 2001 | 2001 | 2000 | 2000 | 2000 | |
| Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | |
| Nordic | 3,114 | 3,030 | 2,921 | 2,894 | 2,650 | 2,502 |
| Baltic and Eastern Europe | 292 | 279 | 210 | 138 | 47 | 40 |
| Central Europe | 1,338 | 1,471 | 1,230 | 1,018 | 799 | 623 |
| Southern Europe | 1,406 | 1,415 | 1,204 | 882 | 632 | 553 |
| Luxembourg | 201 | 189 | 167 | 161 | 153 | 141 |
| Branded products and services | 337 | 371 | 361 | 198 | 322 | 134 |
| Adjustments for sales internal | -364 | -535 | -474 | -342 | -526 | -277 |
| Total operating revenue | 6,324 | 6,220 | 5,619 | 4,949 | 4,077 | 3,716 |
OPERATING PROFIT (LOSS) BEFORE DEPRECIATION & AMORTIZATION, EBITDA
| Proforma | Proforma | |||||
| 2001 | 2001 | 2001 | 2000 | 2000 | 2000 | |
| Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | |
| Nordic | 1,071 | 837 | 784 | 774 | 684 | 748 |
| Baltic and Eastern Europe | 79 | 58 | 59 | -23 | -9 | -1 |
| Central Europe | -124 | -137 | -293 | -500 | -489 | -406 |
| Southern Europe | -295 | -310 | -397 | -331 | -459 | -232 |
| Luxembourg | 33 | -1 | 10 | -91 | -11 | -9 |
| Branded products and services | -48 | -96 | -161 | -185 | -36 | -20 |
| Total EBITDA | 716 | 351 | 2 | -356 | -320 | 80 |
| EBITDA margin | ||||||
| Nordic | 34% | 28% | 27% | 27% | 26% | 30% |
| Baltic and Eastern Europe | 27% | 21% | 28% | -17% | -19% | -3% |
| Central Europe | -9% | -9% | -24% | -49% | -61% | -65% |
| Southern Europe | -21% | -22% | -33% | -38% | -73% | -42% |
| Luxembourg | 16% | -1% | 6% | -57% | -7% | -6% |
| Branded products and services | -14% | -26% | -45% | -93% | -11% | -15% |
| Total EBITDA margin | 11% | 6% | 0% | -7% | -8% | 2% |
THE FULL Q3 RESULT WILL BE RELEASED AS ANNOUNCED ON THE OCTOBER 24, 2001.
Stockholm, October 17, 2001
Board of Tele2 AB
The financial and operating results for the period ended September 30, 2001 have not been subject to specific review by the Company's auditor.
Tele2 AB, formed in 1993, is the leading alternative pan-European telecommunications company offering fixed and mobile telephony, data network and Internet services under the brands Tele2, Tango, Comviq and Q-GSM to 13.7 million people in 21 countries. Tele2 operates Datametrix, which specializes in systems integration, 3C Communications, operating public pay telephones and public Internet services; Transac, providing billing and transaction processing service; C³, offering co-branded pre-paid calling cards and IntelliNet and Optimal Telecom, the price-guaranteed residential router device. The Group offers cable television services under the Kabelvision brand name and together with MTG, owns the Internet portal Everyday.com. The Company is listed on the Stockholmsbörsen, under TEL2A and TEL2B, and on the Nasdaq Stock Market under TLTOA and TLTOB.
CONTACTS
Lars-Johan Jarnheimer Telephone: + 46 8 562 640 00
President and CEO, Tele2 AB
President and CEO, Tele2 AB
Hakan Zadler Telephone: + 46 8 562 640 00
CFO, Tele2 AB
CFO, Tele2 AB
Andrew Best Telephone: + 44 (0) 20 7321 5022
Investor enquiries
Investor enquiries
Patrik Linzenbold Telephone: + 46 8 562 000 53
Press enquiries
Press enquiries
Visit us at our homepage: http://www.Tele2.com