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Tele2 shares soar on booming profits

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09:58 CEST+02:00
Swedish telecom firm Tele2 has reported a dramatic rise in profits for the second quarter and the firm's share price shot up 5.9 percent in early trading on Wednesday.

The Stenbeck family-owned mobile telecom operator reported a pre-tax profit of 1.46 billion kronor ($192 million) for the second quarter 2009. The firm reported a pre-tax profit of 328 million in the corresponding period of 2008.

Tele2's total customer base expanded by 347,000 to 25.4 million during the quarter.

Net turnover climbed to 10.13 billion kronor, in comparison with 9.83 billion a year ago.

Analysts had forecast a pre-tax profit of 1.23 billion kronor and a turnover of 10.25 billion kronor, according to a Reuters poll.

Operating results (Ebitda) amounted to 2.45 billion kronor, in comparison with 2.10 billikon kronor in the second quarter 2008.

"Our development during the second quarter is a result of our investments in core operations and the completion of our economy measures," Tele2 CEO Harri Koponen said in the firm's interim report.

Sales of mobile services continued to develop well during the second quarter. Within fixed line telecoms the firm however continued its contraction and Tele2 will in the future concentrate on maximizing returns from its operations, the report states.

Market traders received Tele2's report with enthusiasm.

Tele2 stock had climbed by 5.9 percent to 87.70 kronor after ten minutes of trading on Wednesday morning on an otherwise falling market.

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