Tele2 profits drop sharply

Sweden’s Tele2 reported on Tuesday morning a sharp drop in profits for the second quarter 2006.

The company’s pre-tax profit of 314 million kronor for the period was 68 percent below figures posted last year at this time. Analysts were expecting 326 million kronor. Shares were down in morning trading.

CEO Lars-Johan Jarnheimer said customer churn has stabilized, and while he expects the decline in total fixed telephony to continue, numbers in Sweden should improve in coming quarters.

Turnover growth in 2006 was reduced from an expected 16 percent to 11-14 percent. Better results are still expected for 2007.