Q3 2013 Highlights

Stable net intake for the Group

Net intake was 206,000 (691,000) in the quarter, of which 263,000 (807,000) mobile customers. Net sales amounted to SEK 7,529 (7,649) million, of which mobile services represented SEK 5,481 (5,325) million, corresponding to a growth rate of 3 percent. EBITDA in Q3 2013 amounted to SEK 1,523 (1,771) million, equivalent to an EBITDA margin of 20 (23) percent. EBITDA for mobile services amounted to SEK 990 (1,115) million.

Steady operational performance in Tele2 Sweden

Tele2 Sweden added 60,000 (34,000) mobile customers in the quarter. Mobile net sales in Sweden contracted by 1 percent, as a result of lower smartphones sales in Q3 2013. Underlying mobile service revenue (excluding operator revenues and hardware sales) grew by 1 percent in the quarter. The mobile EBITDA contribution in the quarter was SEK 760 (828) million, equivalent to a stable EBITDA margin of 30 (33) percent.

Strong customer intake within mobile for Tele2 Netherlands

Tele2 Netherlands continued its marketing push within the mobile segment, accelerating its customer intake to 56,000 (51,000) customers and taking the total mobile customer base to 640,000 (423,000). Mobile net sales amounted to SEK 463 (234) million and underlying mobile service revenue grew by 74 percent in Q3 2013. In the quarter, the company secured a long-standing agreement with T-Mobile Netherlands for passive network sharing combined with an extension of the successful MVNO agreement.

Good progress in network roll-out for Tele2 Norway

Tele2 Norway added 5,000 (16,000) mobile customers in the quarter. The network rollout continued full speed ahead, now covering approximately 72 percent of the population. The underlying mobile service revenue growth was 2 percent in Q3 2013.

Robust revenue growth in Tele2 Kazakhstan

In the quarter, Tele2 Kazakhstan introduced several measures, such as moving from a fixed dealer commission to revenue sharing schemes, in order to attract better quality customers. A short-term negative outcome of the changed commission scheme was lower gross additions in the quarter. Net intake amounted to -14,000 (589,000) and the total customer base was 3,148,000 (3,051,000) on September 30, 2013. Mobile net sales grew by 32 percent in Q3 2013 amounting to SEK 357 (270) million. Underlying mobile service revenue grew by 48 percent. Thanks to improved operational scale and lower interconnect levels, EBITDA losses were reduced to SEK -34 (-102) million.

Revised financial guidance

Tele2 has revised its financial guidance for 2014-2015 leading to a deviation from its earlier guidance for the years 2013-2015. As a result of the sale of Tele2 Russia and the revised guidance, dividend for 2013 is expected to be around SEK 4.40 per share.For more information, click here.