Expansion pays off for Tele2
Sweden's Tele2 said its net profit grew 46% to 1.6 billion Swedish kronor (€155.1 million), after breaking even on its new Russian operations.
The operator said its Tele2 Russia unit achieved ebitda breakeven on a monthly basis in its two new operating regions, nine months after commercial launch.
Tele2 Russia recently expanded into the regions of Tula and Orel, and added 1.1 million customers during the quarter, bringing its total to over 16 million.
Smartphones were key to success in Nordic markets, with falling prices and increasing choice of models fuelling better-than-expected growth in net sales of 5% to 2.09 billion Kronor in Sweden.
Overall the Tele2 group added 1.2 million new mobile customers – more than twice the net intake from Q209. But fixed broadband subscribers declined by 2,000, and fixed telephony customers also declined.
Tele2's overall customer base was 28.75 million by the end of the quarter.
Group net sales grew to 9.96 billion kroner from 9.91 billion. Ebitda was 2.7 billion Kronor, equivalent to a margin of 27%.