Tele2 Buys Spring Mobil, Reports H1Tele2 Buys Spring Mobil, Reports H1

Tele2 swallows up Swedish mobile operator for SEK100M ($13.6M), announces H1 results

July 26, 2010

2 Min Read

STOCKHOLM -- Tele2 AB, ("Tele2"), (Stockholm Stock Exchange: TEL2 A and TEL2 B), announced today that Tele2 Sweden, after approval by the Competition authority, has completed the acquisition of the remaining 50 percent of the Swedish mobile operator Spring Mobil. Tele2 has paid in cash SEK 100 million for the acquisition.

In a separate release:

STOCKHOLM -- Tele2 AB, (Tele2), (NASDAQ OMX Stockholm: TEL2 A and TEL2 B) today announced its consolidated results for the second quarter 2010.

"We achieved several important milestones during the second quarter of 2010. The availability of more affordable smart phone handsets contributed to the creation of a mass market, benefiting Tele2's more value-oriented customers; we improved the mix of our handset portfolio in Sweden; Tele2 Russia exceeded 16 million customers and the new regions started to reach profitability; and Tele2 Croatia attained EBITDA break-even. This positive momentum will take Tele2 to the next level", comments Lars Nilsson, CFO & Interim President and CEO of Tele2 AB.

Financial highlights

Net sales in Q2 2010 amounted to SEK 9,967 (9,912) million, excluding one-off items of SEK 588 (-59) million. Including one-off items, net sales amounted to SEK 10,555 (9,853) million. EBITDA amounted to SEK 2,687 (2,446) million, equivalent to an EBITDA margin of 27 (25) percent.

First two new Russian regions EBITDA break-even on a monthly basis, driving best ever operational performance in the market area In Q2 2010, Tele2 Russia added 1,113,000 (478,000) customers. During the quarter, EBITDA amounted to SEK 944 (644) million and the first two new regions reached EBITDA break-even on a monthly basis, nine months after commercial launch.

Accelerated mobile revenue growth in market area Nordic Mobile revenue in market area Nordic grew by 4 percent, led by Tele2 Sweden's push into the smart phone segment, and as a result of higher take-up rate of data subscriptions.

Tele2 AB (Nasdaq: TLTO)

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like