Tele2 talks up mobile service revenue boost in Q3 - Mobile World Live

Tele2 talks up mobile service revenue boost in Q3

21 OCT 2015

Tele2 saw net sales of SEK6.79 billion ($818 million) in Q3 2015, a 3 per cent increase year-on-year, thanks to “strong usage of mobile data services, leading to a mobile end-user service revenue growth of 5 percent”.

However, net profit decreased by 45 per cent compared to Q3 2014, standing at SEK 397 million.

Due to accelerated launch plans for Tele2’s own 4G network in the Netherlands, full-year earnings will take a knock.  EBITDA is now forecast at SEK5.6 billion to SEK5.8 billion, as opposed to SEK5.8 billion SEK6.0 billion.

But net sales benefited from strong equipment revenue in anticipation of its own-network launch in Netherlands, as well as in Lithuania.

However, consumer fixed telephony and fixed broadband saw negative net sales and the group said it will concentrate on “maximising the return” from fixed line services.

According to president and CEO, Allison Kirkby, the third quarter results “show solid momentum”. She said in the Netherlands a shift in the mobile customer base from low-end subscribers to higher data drove the positive revenue development in the quarter.

However, “as expected”, mobile margins were impacted by increasing costs to its MVNO host and costs relating to MNO rollout.

“The fixed business remains challenging, and the competition within the segment has intensified,” she added.

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Saleha Riaz

Saleha joined Mobile World Live in October 2014 as a reporter and works across all e-newsletters - creating content, writing blogs and reports as well as conducting feature interviews...More

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