Swedish telecom company, TELE2 reports increased profits
Tuesday, 07 February 2012
Telecom company, Tele2, reported net sales amounting of some Skr10,839 (10,109) million, corresponding to a growth excluding exchange rate difference of 8 percent in 4th quarter. EBITDA amounted to Skr 2,791 (2,488) million, equivalent to an EBITDA margin of 26 (25) percent.
Analysts had expected the EBITDA score of Skr2.758 million, according to SME Direkt. The outcome was thus 1.2 per cent better than consensus expectation.
The company wrote in its end of year report that the strong EBITDA contribution came from market area Russia, where Tele2 Russia added another 250,000 (755 000) customers in Q4 2011. EBITDA amounted to Skr 1,209 (899) million, equivalent to an EBITDA margin of 40 (34) percent.
Mobile revenue in Sweden grew by 7 percent, as customer demand for smart phones and data services remained strong during the quarter.
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).
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 internet service provider Silver Server.
CEO Mats Granryd in a comment said that “today’s results show the strength of Tele2. The 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 rapid change in the landscape of telecoms offers new opportunities and challenges, with our top priority remaining the same; to offer its customers what they need for less.”
The board decided to recommend an increase in the ordinary dividend of 8 percent to Skr6.50 from Skr 6.00 per share in respect of the financial year 2011. The Board also decided to recommend an extraordinary dividend of SEK 6.50.
By Scancomark.se Team