(Telecompaper) Tele2 reported continued revenue growth in the second quarter on its expansion in the mobile market, while profits fell due to the costs of launching its own network in the Netherlands and restructuring. Total revenues rose 4 percent to SEK 6.611 billion, led by a 7 percent rise in mobile service revenues to SEK 3.324 billion. EBITDA fell to SEK 1.393 billion from SEK 1.470 billion a year ago, and the margin dropped to 21 percent from 23. In addition to lower profits from fixed services, EBITDA was hurt by losses in the Netherlands mobile business for the roll-out of its own network there and SEK 71 million in charges for the earlier announced 'Challenger' programme to reduce costs. Net profit dropped to SEK 309 million from SEK 802 million a year ago, when the company had a positive one-off of SEK 363 million from the valuation of a put option in Kazakhstan. Capital expenditure jumped to SEK 1.134 billion from SEK 850 million in the year-earlier period, amid increased investments in mobile networks in the Netherlands, Sweden and Kazakhstan. Free cash flow was a negative SEK 268 million, little changed from a year ago. Tele2 maintained its outlook for mid single-digit growth in mobile service revenue this year and total revenues of SEK 25.5-26.5 billion. EBITDA is expected to reach SEK 5.8-6.0 billion in 2015, and capital expenditure will total SEK 3.8-4.0 billion. Restructuring costs for the Challenger programme are expected at around SEK 200 million.