Telecom service provider Tele2 AB on Thursday lowered its earlier Capex (Capital spending) to $689 million (SEK 4.5 billion) for 2014.
This is primarily due to consequence of the uncertainty arising from the developments in Tele2 AB’s Norwegian business.
Tele2 AB said the two year financial guidance for 2014 and 2015 that Tele2 provided in April 2013 was undertaken in connection with the disposal of our Russian business, which generated a one-time gain of SEK 13.9 billion and distribution to shareholders of SEK 12.5 billion.
Recently, as a consequence of the uncertainty arising from the developments in our Norwegian business, we decided to bring our guidance policy back into line with our peer group and providing current year group consolidated Net Sales, EBITDA and Capex.
The Capex of Tele2 AB during the fourth quarter of 2013 was SEK 1.26 billion.
Meanwhile, Tele2 AB reported 2.8 percent decrease in sales in 2013 to SEK 29,871. Its net profit grew 347 percent to SEK 14,590 billion.
Tele2 AB, announcing the fourth quarter revenue, said it is encouraging to see mobile end-user service revenue growth in Sweden, the Netherlands and Kazakhstan. Fixed operations in Netherlands are showing sign of stabilization. The Shift from pay-as-you go to bucket price plans in Sweden continues.
Norway will be addressed in a way that maximizes value for shareholders. There will be continued focus on MNO roll out in the Netherlands and Kazakhstan. It will intensify focus on B2B in Sweden and in the Netherlands. Plans are on to improve customer quality in Kazakhstan.
