Tele2 AB has slashed its Capex (capital spending) for 2014 to SEK 3.5-3.8 billion from SEK 4.5 billion planned earlier – due to divestment of Tele2 Norway to TeliaSonera.
In the second quarter of 2014, Tele2 Capex decreased to SEK 850 million from SEK 714 million despite investing for network expansion in Sweden, the Netherlands and Kazaksthan telecom markets.
The company said its second quarter sales decreased to SEK 6,343 million from SEK 6,424 million — affected by fixed line telephony and termination rates.
Tele2 AB said mobile end-user service revenue grew 7 percent to SEK 3,094 million from SEK 2,900 million. This trend was driven by positive usage of mobile data, compensating less revenue from mobile voice and SMS.
Tele2 Sweden
Mobile end-user service revenue in Sweden grew 4 percent in Q2 2014, driven by increased usage in the postpaid segment. The mobile EBITDA contribution in the quarter was SEK 777 (757) million.
Tele2 Netherlands
Tele2 Netherlands added 27,000 (49,000) customers and taking the total mobile customer base to 768,000 (584,000). Mobile end-user service revenue rose 36 percent to SEK 308 million from SEK 227 million.
Tele2 Kazakhstan
Customer intake amounted to 213,000 (309,000) in Q2 2014, as the new commission structure yielded results. Service revenue grew 1 percent in Q2 2014 to SEK 225 million from SEK 223 million impacted by devaluation of the local currency and lower interconnect levels.
Tele2 Norway
In July 2014, Tele2 agreed to sell its Norwegian business to TeliaSonera for an enterprise value of SEK 5.1 billion, equivalent to a cash value of SEK 5.3 billion. The transaction follows Tele2’s strategic review of its Norwegian business prompted by changes to the structure of the Norwegian market as a result of the license auction in December 2013.
