Tele2 Q3 EBITDA slightly higher on mobile telephony ops

Tele2 Q3 EBITDA slightly higher on mobile telephony ops - UPDATE

	Published : Wed, 24 Oct 2007 06:49 By : Agencies Print this Story

(Updating with sales details, customer intake, ARPU, capex, business area breakdown)

STOCKHOLM (Thomson Financial) - Tele2 AB said its third-quarter EBITDA rose 8.5 pct to 1.844 bln skr from 1.657 bln skr, boosted primarily by an improved revenue mix, with a larger contribution from mobile telephony.

Market expectations were for an EBITDA of 1.928 bln skr, according to a survey by SME Direkt.

Sales decreased 1 pct to 10.909 bln skr from 11.014 bln a year earlier, slightly above market forecasts of 10.733 bln.

Tele2 said the number of corporate customers is rising and corporate sales represent 18 pct of group revenue.

'In addition to our already solid corporate customer base in Austria, the Netherlands and Sweden, we are stepping up our efforts in the SME segment in the Baltic countries and Russia, and we see great opportunities also in other countries,' Tele2 chief executive Lars-Johan Jarnheimer said.

Net customer intake fell to 491,000, compared with 702,000 in Q3 2006, mainly affected by positive growth in Mobile telephony and Broadband, partially off-set by continued customer outflow from the Fixed telephony customer base.

'Customer intake was also hampered to some extent by divestments made in the quarter. Fixed-line services continue to be negatively affected by increased competition from mobile services together with alternative services such as VoIP (Voice over Internet Protocol),' Tele2 said.

Total group ARPU (average revenue per user) fell to 137 skr from 142 skr.

Mobile customer intake was 865,000, compared with 976,000 in Q3 2006, with Moble Telephony revenues rising 17 pct and EBITDA improving 29 pct. Mobile ARPU was 121 skr down from 127 skr.

'Once again, Russia was the biggest growth contributor although Sweden had a very strong quarter adding 100,000 new mobile customers. In Sweden, we are finally seeing a clear pick-up in mobile broadband and 3G services during the past two quarters. At the end of Q3 2007 we had 45,000 mobile broadband customers in Sweden. We intend to continue our push into the fourth quarter,' Jarnheimer said.

Broadband resale customers decreased by 10,000 compared with the Q3 2006 increase of 20,000, and direct access & LLUB (Local Loop Unbundling) customers increased by 77,000, compared with 54,000 in Q3 2007.

Broadband resale ARPU was 228 skr down from 257 skr, and direct access & LLUB ARPU slipped to 518 skr from 617 skr.

The number of fixed telephony customers fell by 441,000 in the quarter, compared with a decline of 348,000 for the same period last year, with fixed telephony ARPU at 124 skr down from 126 skr. Tele2 said the decline in fixed line services is expected to continue.

Capex fell slightly to 1.188 bln skr from 1.420 bln a year earlier.

Among the business areas, Nordic reported EBITDA of 804 mln skr, compared with 897 mln skr in Q3 2006, with Swedish mobile telephony EBITDA margins falling to 38 pct from 43 pct in Q3 2006.

Baltic & Russia reported a 60 pct rise in EBITDA to 770 mln skr.

hans.chumakonde@thomson.com

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Tele2 Q3 EBITDA slightly higher on mobile telephony ops - UPDATE