Tele2 struggling in first quarter

Swedish operator Tele2 today reported that net profit for the first quarter more than halved to SKr230m (ВЈ17m), down from SKr483m a year ago. Earnings before interest, tax, depreciation and amortisation (EBITDA) also dropped from SKr1.41bn to SKr1.37bn, although revenues increased from SKr11.57bn a year ago to SKr13.45bn.

Lars-Johan Jarnheimer, president and chief executive officer of Tele2 said that 2006, “is a year of transition. The balance we have maintained between growth, profitability and cash flow has temporarily shifted in favour of growth as we seize the opportunities available to us in broadband and mobile, in order to position the business for the longer term.”

The company’s number of mobile subscribers increased 43 per cent year on year to top 12.4 million during the first quarter, but the fixed telephony and internet subscriber base suffered as users migrated away. The fixed line base decreased 9 per cent year on year to just over 18 million.

Tags: Regional, Sweden, Tele2

This entry was posted on May 03rd, 2006 and is filed under Operators. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or Trackback from your own site.