Tele2 posts net loss in Q2, revenues up 6%

Tele2 recorded a net loss of SEK 501 million for the second quarter, versus a profit of SEK 246 million a year earlier. Profits were hurt by some SEK 520 million in one-time charges related to the sale of its prepaid calling card businesses, as well as charges for tax assets, mainly in Germany. Revenues from continuing operations rose 6 percent to SEK 13.110 billion, driven by growth in the Baltics & Russia and the Nordic markets. Tele2 added a net 382,000 new customers in the quarter, as 931,000 new mobile subscribers and 201,000 additional LLU users offset a loss of 770,000 fixed telephony resale customers. Average revenue per user fell to SEK 142 from SEK 145, dropping across all four of Tele2′s product categories. EBITDA improved to SEK 1.737 billion from SEK 1.237 billion on the back of narrowing losses in southern Europe, stronger results in the Benelux and a doubling in profits for the Baltics & Russia division.

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