STOCKHOLM -- Tele2 AB, (Tele2), (NASDAQ OMX Stockholm: TEL2 A and TEL2 B) today announced its consolidated results for the full year and fourth quarter 2011.

"Today's results show the strength of Tele2. In Q4 net sales, less exchange rate adjustments, grew by 8 percent to SEK 10,839 (10,109) million and EBITDA reached SEK 2,791 (2,488) million, at a margin of 26 (25) percent.

This quarter also confirmed the momentum of Tele2's growth during 2011 with the completion of acquisitions in Norway (Network Norway), and in Austria (Silver Server), the launch of 12 out of 16 regions in Kazakhstan and the acquisition of spectrum in Sweden, Estonia, Lithuania, Latvia and Kazakhstan to contribute to our data strategies. We won 6 new regions in Russia, bringing our total to 43 (37)."

Financial highlights
Net sales amounted to SEK 10,839 (10,109) million corresponding to a growth excluding exchange rate difference of 8 percent in the quarter. EBITDA in Q4 2011 amounted to SEK 2,791 (2,488) million, equivalent to an EBITDA margin of 26 (25) percent. EBITDA growth excluding exchange rate differences was 13 percent.

Strong EBITDA contribution in market area Russia
In Q4 2011, Tele2 Russia added 250,000 (755,000) customers leading to a total customer base of 20.6 (18.4) million. EBITDA amounted to SEK 1,209 (899) million, equivalent to an EBITDA margin of 40 (34) percent.

Robust mobile revenue growth in market area Nordic
Mobile revenue in Sweden grew by 7 percent, as customer demand for smartphones and data services remained strong during the quarter. Tele2 Norway and Network Norway were fully integrated in the quarter, creating the third largest mobile operator in the country.

Significant operational progress in market area Central Europe & Eurasia
During the quarter, Tele2 Kazakhstan continued its successful launch of new regions, resulting in a customer intake of 249,000 (114,000). The total customer base amounted to 1,371,000 (332,000). The Baltic countries drove further cost cutting in the quarter, maintaining their firm EBITDA margin development.

Improved margin development in fixed broadband in market area Western Europe
Tele2 Netherlands expanded its fixed broadband margin further to 36 (29) percent thanks to further scale benefits from the BBned acquisition. In the quarter, Tele2 Austria announced the acquisition of Silver Server, strengthening its position in the business segment.

Tele2 AB (Nasdaq: TLTO)