Sweden
| SEK million | 2009 | 2008 | Change |
| *) Including changed definition (see Note 5) | |||
| Number of customers (in thousand)*) | 4,553 | 4,608 | -1% |
| Net sales, external | 11,114 | 11,125 | 0% |
| EBITDA | 2,984 | 3,018 | -1% |
| EBIT | 1, 935 | 2,100 | -8% |
Key priorities in 2009
In 2009, Tele2 Sweden focused mainly on three areas: growth in the postpaid and mobile internet segments, improved quality, and market share expansion in the corporate segment.
Despite tough market conditions, Tele2 Sweden managed to achieve strong results through quality-enhancing activities, combined with cost containment efforts. The completion of the initial phases of Tele2’s upgrade of its CRM system together with continued 2G and 3G network upgrades contributed to several quality awards and high rankings from customers. Cost efficiency and hence profitability was improved by Tele2’s cost effective networks, such as the 3G network jointly owned with TeliaSonera.
Improved quality combined with low prices has enabled Tele2 to provide the Best Deal to mobile customers. This has generated strong sales in both the postpaid and prepaid segments. In the prepaid segment, the Comviq brand obtained the number one position in the market. Tele2 Sweden pushed harder in the postpaid segment with marketing activities, consequently generating higher ARPU customers. Tele2 Sweden increased sales and strengthened control of the distribution network by opening its own stores in 2009. Going forward, Tele2 Sweden will leverage its experience in net sharing, e.g. by investing in a 4G network together with Telenor. Tele2 Sweden will at the same time upgrade its 2G network.
The total mobile internet customer base amounted to 274,000 (170,000) in 2009. Tele2 Sweden secured the number one position in the prepaid mobile internet market. The total net intake amounted to 205,000 (259,000) in 2009. As a consequence of the changed principle of calculating the number of active customers in 2009 (Note 5), the total net intake during the year was lower compared to the same period last year.
Net sales for mobile services grew by 1 percent to SEK 7,668 (7,605) million. EBITDA contribution was SEK 2,375 (2,646) million in 2009 affected by an increased amount of subscriptions being sold with monthly instalments. Tele2 Sweden showed continued profitability within the prepaid voice segment with an EBITDA margin of 50 percent due to a strong ARPU development.
The mobile operations in Sweden reported an ARPU of SEK 196 (210). ARPU for mobile internet increased during the year to SEK 123 (109). MoU per customer, excluding mobile internet, increased to 230 (223) in 2009.
Costs associated with SUNAB joint venture amounted to SEK 417 (490) million in 2009.
Tele2’s broadband services also delivered solid profitability in 2009. During the coming year, Tele2 expects demand for high-speed access to increase. Tele2 will meet the increased demand for data capacity by further developing its LAN business, and by complementing its fixed broadband services with a high-speed mobile internet network (4G). 4G will be an attractive alternative for those customers whom Tele2 cannot offer fixed broadband services today, ultimately enabling the company to provide internet access to more customers.
Fixed telephony continued to deliver strong profitability and cash flow during 2009, and managed to defend its market position. Mobile and fixed services are converging, a trend that Tele2 capitalizes on by offering services such as home telephony over the mobile network.
Challenges to address in 2010
The postpaid strategy of investing in high ARPU customers will continue and start to pay off. A stagnating market with fierce price competition and decreasing termination rates, will put pressure on margins. Despite the challenging outlook, Tele2 expects to deliver revenue growth through postpaid sales that generate higher ARPU. Tele2 will attract customers by responding to the increasingly price-conscious market. Growth in new areas will also contribute to increased sales, e.g. mobile internet, location-based services, mobile advertising and mobile payments. In addition, profitability will be enhanced through cost savings from operating joint-venture networks, the efficient use of distribution channels, stronger focus on online activities, and increased levels of self-service. Furthermore Tele2 will roll-out the 4G-network jointly with Telenor.