(Telecompaper) Tele2 reported first-quarter sales down 3 percent year-on-year to SEK 7.11 billion, as a contraction in its traditional fixed business offset expansion in the mobile sector. In addition, lower termination rates and the sale of its cable business in Sweden impacted results. Mobile service revenue still increased by 3 percent to SEK 3.60 billion, thanks to customer growth in markets such as the Netherlands and Kazakhstan and increased demand for data services. The mobile customer base grew by a net 68,000, while fixed broadband subscribers were down by 18,000 in the three months. The group's EBITDA was down 7 percent to SEK 1.38 billion, amid increased marketing spend to drive the mobile growth. Net profit rose 35 percent to SEK 475 million thanks to a capital gain of SEK 257 million booked in January on the sale of the Swedish cable business. While capex halved compared to a year earlier to SEK 963 million, cash flow was still a negative SEK 555 million. Tele2 said the focus going forward will be on driving mobile growth in the Netherlands and Kazakhstan, based on its profitable, data-centric model in Sweden. The company is still conducting a strategic review of its Norwegian operations.