Financial overview
With 27 million customers in 10 countries, Tele2 is one of Europe’s leading telecom operators. Ever since Tele2 was founded in 1993, we have been a tough challenger to incumbents and other established providers. Tele2 strives to offer our customers the Best Deal at all times.
Tele2 offers mobile communication services, fixed broadband and telephony, data network services, cable TV and content services. Mobile communication is our primary focus area and it is our most important growth segment. In some countries, Tele2 also offers fixed communication services. Mobile telephony currently accounts for more than 60 percent of Tele2’s operating revenue.
The cornerstone of Tele2’s concept is to always be able to offer the best deal on the market. We do this by listening to our customers’ needs at all times, while keeping costs under tight control. We have steadily increased our market shares, while maintaining a healthy return on capital. We will make every effort to ensure that these positive trends continue, and would like more people to cut the cord and become truly mobile.
Tele2 has been listed on the OMX Nordic Exchange since 1996. In 2009, we generated net sales of SEK 39.3 billion and reported an operating profit (EBITDA) of SEK 9.2 billion.
Comments below relate to Tele2’s continuing operations unless otherwise stated.
Net customer intake
In 2009, the total customer base increased to 26,579,000 (24,018,000). Net customer intake, excluding acquired and divested companies was 2,327,000 customers compared with 1,141,000 customers the previous year. The customer intake in mobile services increased by 32 percent to 3,139,000 (2,372,000), of which 142,000 (88,000) were mobile internet users. The good intake in mobile services resulted from a solid performance mainly in Tele2 Russia and Tele2 Sweden. In 2009, Tele2 Russia launched 18 new regions resulting in a total customer intake of 2,947,000 (1,858,000) of which 1,898,000 (103,000) were derived from new operations. Fixed broadband lost -11,000 (71,000) customers in 2009, mainly due to less emphasis on market share and a larger focus on profitability throughout the Tele2 footprint. Fixed telephony had an expected outflow of customers during the year.
Net sales
Tele2’s net sales amounted to SEK 39,265 (38,272) million. The positive revenue development was driven by good trends in core mobile services and fixed broadband services.
EBITDA
EBITDA was SEK 9,185 (8,169) million, with an EBITDA margin of 23.4 (21.3) percent. The EBITDA developments was positively affected by strong operational development in fixed broadband services and to some extent hampered by an increased push in mobile marketing spend with an emphasis on the roll-out of new regions in Russia.
EBIT
Operating profit/loss, EBIT, was SEK 5,527 (2,848) million, which includes impairment losses and other one-off items of SEK -11 (-1,642) million. The EBIT margin amounted to 14.1 (7.4) percent.
Profit/loss before tax
Net interest expense and other financial items totalled SEK -500 (-1,013) million. Exchange differences of SEK -77 (-550) million were reported under other financial items. The average interest rate on outstanding liabilities was 6.9 (6.2) percent. Profit/loss after financial items, EBT, amounted to SEK 5,027 (1,835) million.
Net profit/loss
Profit/loss after tax was SEK 4,601 (1,715) million. Earnings per share amounted to SEK 10.35 (3.81) after dilution. Tax on profit/loss for the year was SEK -426 (-120) million.
Cash flow
Cash flow from operating activities, including discontinued operations, amounted to SEK 9,118 (7,896) million and cash flow after CAPEX amounted to SEK 4,778 (3,288) million.
CAPEX
During 2009, Tele2 made investments of SEK 4,439 (4,481) million in tangible assets and intangible assets (CAPEX), mainly driven by expansion in Russia.
Net debt
Net debt amounted to SEK 2,171 (4,952) million at December 31, 2009, or 0.2 times EBITDA in 2009. Including guarantees to joint ventures, the net debt to EBITDA in 2009 amounted to 0.4 times. Tele2’s available liquidity amounted to SEK 12,410 (17,248) million.