Telecom service provider Tele2 AB today said its Q1 2014 sales decreased 3 percent to SEK 7,298 million, while profit increased 35 percent to SEK 475 million. It will lower its 2014 Capex (capital spending) to SEK 4.5 billion against SEK 5.2 billion in 2013.
In Q1 2014, Tele2 AB Capex decreased significantly to SEK 963 million from SEK 2,123 million in Q4 2013. It spent SEK 964 million (SEK 1847 million) in mobile, SEK 131 million (SEK 125 million) in fixed broadband and SEK 15 million (SEK 12 million) in fixed phone in the first quarter of 2014.
The main focus of its capital investment was for upgrading network in Sweden, the Netherlands, Norway and Kazakhstan.
Towards 2014 outlook, TeleAB said the annual revenue would be SEK 30 billion.
In the fourth quarter, mobile end-user service revenue grew 3 percent to SEK 3,600 (3,496) million. This trend was driven by usage of mobile data, compensating less revenue from mobile voice and SMS, said Mats Granryd, president & CEO, Tele2 AB.
Mobile end-user service revenue in Sweden grew 3 percent Q1 2014, driven by increased usage in the postpaid segment. The mobile EBITDA contribution in the quarter was SEK 745 (732) million.
Tele2 Netherlands gained market share by adding 47,000 (57,000) customers and taking the total mobile customer base to 741,000 (535,000). Mobile end-user service revenue rose 39 percent to SEK 273 (197) million.
Tele2 Norway had a net intake of 14,000 (-4,000) in the quarter, leading to a total customer base of 1,132,000. In Q1 2014, One Call became the third largest mobile operator in Norway in terms of customers, reaching 423,000 users. A strategic review of the Norwegian business was initiated, following the result of the license auction in December 2013.
Tele2 Kazakhstan posted customer intake of 20,000 compared to -393,000 in Q4 2013. End-user service revenue grew 11 percent to SEK 216 (195) million.