Tele2’s financial performance is driven by its relentless focus on developing mobile services on its own infrastructure, complemented in certain countries by fixed broadband services and business-to-business offerings. Mobile sales, which grew compared to the same period last year, and a greater focus on mobile services on own infrastructure has further improved Tele2’s EBITDA margin. The company will concentrate on maximizing the return from fixed-line operations as their customer base continues to decline.
Net customer intake amounted to 399,000 (811,000) in Q1 2011. The customer intake in mobile services amounted to 522,000 (972,000), of which 14,000 (33,000) were mobile broadband users. This was mainly driven by a robust performance in Tele2 Russia. During the period, Tele2 Russia’s customer base grew by 547,000 (949,000) customers. Fixed broadband customer base lost -4,000 (9,000) customers in Q1 2011, primarily attributable to Tele2’s operations in the Netherlands and in Germany. As expected, the number of fixed telephony customers fell in Q1 2011. On March 31, 2011 the total customer base amounted to 31,238,000 (27,655,000) thanks to a prolonged success in mobile services.
Net sales amounted to SEK 9,573 (9,527) million corresponding to a growth less exchange rate fluctuations of 7 percent. The revenue development was mainly a result of sustained success in mobile services, offset to some extent by negative sales development in fixed telephony.
EBITDA in Q1 2011 amounted to SEK 2,457 (2,358) million, equivalent to an EBITDA margin of 26 (25) percent. EBITDA growth less exchange rate fluctuations amounted to 11 percent. The EBITDA development was positively affected by Tele2’s mobile operations.
EBIT in Q1 2011 amounted to SEK 1,560 (1,549) million excluding one-off items1. Including one-off items, EBIT amounted to SEK 1,659 (1,546) million.
Profit before tax in Q1 2011 amounted to SEK 1,597 (1,588) million.
Net profit amounted to SEK 1,226 (1,249) million in the quarter. Reported tax for Q1 2011 amounted to SEK -371 (-339) million. Tax payment affecting cash flow amounted to SEK -225 (-233) million.
Cash flow after Capex in Q1 2011 amounted to SEK 1,121 (1,683) million.
CAPEX in Q1 2011 amounted to SEK 939 (582) million.
Net debt amounted to SEK 491 (3,203) million on March 31, 2011, or 0.05 times full-year 2010 EBITDA. Including guarantees to joint ventures, the net debt to full-year 2010 EBITDA amounted to 0.22 times. Tele2’s available liquidity amounted to SEK 16,422 (13,188) million.