Tele2 reported Q2 results which it said “proved the strategy to become a value champion is the right way forward”, although there has been weakness in its fixed business.

“With loyal customers, high consideration, and the increasing data consumption, Tele2 is in a strong position to continue monestising on data going forward,” Mats Granryd, president and CEO of Tele2 (pictured), claimed.

The company reported Q2 net profit of SEK309 million ($35.8 million), down 62 per cent from SEK821 million, on revenue of SEK6.61 billion, up 4 per cent from SEK6.34 billion. Adjusted for foreign exchange impact, sales grew by 2 per cent.

EBITDA was SEK1.39 billion, down 5 per cent.

Mobile end-user service revenue increased by 7 per cent to SEK3.32 billion. Churn was at its lowest level “in many quarters”.

It noted a number of factors which had impacted its operations, including declines in fixed operations and further investments to scale its business in the Netherlands, and a financial transaction last year related to the Kazak business which resulted in a SEK363 million gain.

Among the positives noted by the company were EBITDA growth in mobile for Tele2 Sweden, as it developed its dual-brand strategy. Tele2 Netherlands increased its customer base, although EBITDA was impacted by higher national roaming costs due to rapid growth in data consumption and further investments to build its network operator business.

The company also noted customer growth in Kazakhstan. According to Reuters, Granryd said this market is likely to be “difficult” for the rest of 2015, due to fierce competition turning the market into a “real bloodbath”.

On a group level, net mobile customer intake was 563,000, compared with 286,000 in Q2 2014. Its total at 30 June 2015 stood at 12.95 million.