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Tele2 profits slow in Q4, sales up 4%
2013-02-05 08:50:00| Telecompaper Headlines
(Telecompaper) Tele2 reported fourth-quarter sales up 4 percent from a year-earlier to SEK 11.275 billion, while EBITDA fell 7 percent to SEK 2.672 billion. The company said profits were affected by a seasonal rise in costs, including higher handset subsidies in some more mature markets, such as Sweden and Russia. Net profit fell to SEK 565 million from SEK 1.31 billion a year earlier, due mainly to higher withholding tax on dividends from Russia. Tele2 still increased its dividend to SEK 7.10 per share from SEK 6.50 in 2011, and over the full year, free cash flow was down only slightly, to SEK 4.07 billion. After falling to SEK 5.34 billion in 2012, Tele2 plans to increase capital expenditure in 2013 to around SEK 6 billion, led by spending on 4G licences and roll-out in the Netherlands. Tele2 finished the year with a total 35.695 million mobile customers, after adding 717,000 new subscribers in the fourth quarter. Mobile growth was equally dividend over Russia and Kazakhstan, and the base also increased in the Netherlands, Germany and Norway. In the fixed-line market, the company lost 202,000 customers for a total 1.353 million, and fixed broadband customers declined by 24,000 in the three months to 1.114 million.
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Category:Telecommunications