Tele2 shares soar on booming profits

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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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.