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Tele2 posts 5% growth in mobile service revenues in Q4
2014-02-07 08:54:00| Telecompaper Headlines
(Telecompaper) Tele2 forecast a return to growth in 2014, supported by an improved performance in mobile service revenues in the last quarter. For the current year, the operator targets revenues of SEK 30.0 billion, versus SEK 29.87 billion in 2013, and EBITDA of SEK 6.0 billion, up from SEK 5.99 billion last year. Overall its results showed a small drop in 2013 and the fourth quarter, but the company managed to increase mobile services revenues by 5 percent year-on-year, led by expansion in the Netherlands and Sweden. Total revenues were down 4 percent to SEK 7.57 billion, hurt by termiantion rate cuts and a continued decline in customers for fixed services. EBITDA improved slightly, up 1 percent to SEk 1.46 billion and a margin of 19 percent. EBITDA growth was held back by a chareg of SEK 35 million for job cuts in Norway. Despite losing out in the recent spectrum auction in Norway, Tele2 said it will continue to develop the business there with its existing frequencies and pursue commercial agreements for additional capacity. Tele2's net profit was down 22 percent to SEK 169 million in Q4. Capital expenditure increased to SEK 1.26 billion in the latest quarter as the group pushed ahead with network roll-outs, leading to a drop in cash flow to SEK 507 million. In 2014, the company forecast a small drop in capex to around SEK 4.5 billion from SEK 5.2 billion last year.
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Category:Telecommunications