Tele2 shares jump following Q2 results

Shares in Tele2 AB jumped sharply higher on news of the company's strong Q2 sales growth in Russia and the Baltics, improved profitability at its Swedish mobile division, and on approval at its strategy for France and the Benelux countries, analysts said.

Tele2 AB reported a second quarter EBITDA of 1.689 billion kronor, firmly ahead of SME’s average market expectations of 1.443 billion, supported by strong sales growth in Russia and central Europe, and an improved profitability at its Swedish mobile division, Comviq.

Sven Sköld at Hagströmer & Qviberg said the market is particularly heartened by the Q2 EBITDA of 797 million skr at Comviq, up from 737 million a year earlier. Comviq also made a EBITDA margin of 45%. The division has previously been labouring under the effects of a prolonged price war in the Swedish mobile market.

“What’s driving the share price today is good results from Comviq and from the Baltics and Russia. Comviq is generating most of the cash in the group so its improved performance is really good news,” said Sköld.

Total group sales increased 12% year on year to 12.043 billion, with sales increasing in the Baltics and Russia by 23%.

Customer intake for the second quarter was 722,000, below the consensus of 950,000 but dealers said there was some good news as group churn decreased as a percentage of sales.

Sköld said he is not concerned by the fall in overall customer intake as Tele2’s report shows it increased intake among the high ARPU (average revenue per user) mobile telephony and ADSL customers.

“To me the important thing is what type of customers they have taken in. Dial up customers have an extremely low ARPU,” said Sköld.

Dealers were also positive about the report.

“After six consecutive quarters of disappointment, Tele2 delivered results which will receive a positive reaction,” said a dealer at a Swedish brokerage.

“The double message of stabilised operations and a refocused strategy should be clearly positive and should see shares rise 4-5%.”

Sköld agreed. He said some of the company’s intake problems were down to the Benelux and France but that Tele2 is tackling this with a strategy which includes a mixture of third party agreements and acquisitions.

“They have sat down and thought about it and come up with a strategy for each market. So they are doing something about their problem markets,” he said.



Tele2 and Comviq mobile blackout cuts off Swedish users abroad

If you've been having trouble getting your mobile to work outside Sweden since Friday, this may be the reason why.

Tele2 and Comviq mobile blackout cuts off Swedish users abroad
Photo: TT

Swedish prepaid mobile phone brand Comviq and its European holding company Tele2 are experiencing serious problems with their overseas networks. 

The unexpected glitch means Swedish customers abroad are experiencing difficulties when placing and receiving calls, texting and browsing the internet, a situation that’s gone on for more than 24 hours.

“It's deeply regrettable,” admits Tele2 media spokesperson Johan von Heijne.

“We urge those who need to get in touch with people to look for places with Wifi instead.”

Tele2 and Comviq’s networks continued to experience problems on Saturday with no apparent solution in sight.

“We have no new information yet,” von Heijne is quoted as saying by Swedish news agency TT.


To make matters worse, Tele2's website is down.

“This is an unfortunate coincidence. But we’re reaching out to our customers through our other channels, ” explained von Heijne.

Tele2 started as a telecommunications company in Sweden in 1993 and currently operates in Sweden, Croatia, Estonia, Kazakhstan, Latvia, Lithuania, the Netherlands, Russia and Germany.

Comviq merged with Tele2 in 1997, but the name Comviq was retained as a brand, together with Tele2's own brand Tele2 Mobile.