Sweden-based telecommunications operator Tele2 (OMX: TEL2 B) completed a difficult first quarter 2012 with net sales of just under 10.5 billion SEK. While that is 8% more than last year, EBITDA was practically unchanged at 2.57 billion as EBITDA margin faltered to 25% partially explained by increasing marketing costs. Net profit prints at 869 million.
The company said it has foreseen the trend from voice to data and prepaid to postpaid. This should persist over the medium term in their view. In the short term this presents certain challenges.
Tele2 now has almost 21 million customers in Russia, making it number 4 in the country. It has 1.7 million customers and adding in newly established Kazakhstan operations. In total it has presence in 11 countries. Still over 40% of the revenues come from its home market in Sweden and Norway. Net customers intake during Q1 overall was 559 000.
The revenue did not quite live up to expectations. Tele2 released guidance geographically, and EBITDA margin guidance downward adjustment on major markets wasn’t well received either. This meant a solid minus for the week.
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