NEW YORK and STOCKHOLM, Sweden, Feb. 19, 2002 (PRIMEZONE)-- Tele2 AB ("Tele2", "the Group") (Nasdaq:TLTOA) (Nasdaq:TLTOB) and (Stockhomsborsen:TEL2A) and (Stockhomsborsen:TEL2B), the leading alternative pan-European telecommunications company, today announced its consolidated results for the fourth quarter and twelve months ended December 31, 2001.
-- 54% Increase in Pro Forma Operating Revenue for 2001
-- Tele2 Sweden's Mobile Operations Reported 54% EBITDA Margin in
2001 and Revenues Up 20%
-- 15 Million Subscribers by Year End, an Increase of 29%, Mobile
Subscribers Up 45%
-- EBITDA MSEK 1,699 (Pro Forma 2000 MSEK -371)
-- Tax Payable Reduced by SEK 3.1 Billion Following Restructuring
-- Balance Sheet Further Strengthened with EUR 1.2 Billion 5 Year
Facility
Tele2 Financial Summary
SEK millions 2001 2000
Pro
forma
Operating Revenue 25,085 16,243
Operating Profit (loss)
before depreciation and amortization (i) 1,699 -371
after depreciation and amortization (ii) -1,356 -2,850
Profit (loss) after financial items (iii) -1,944 -3,063
Profit (loss) after taxes (iv) 392 -3,618
Earnings (loss) per share, after dilution 2.70 -34.36
(i) EBITDA (ii) EBIT (iii) EBT(iv) see Note 4
Lars-Johan Jarnheimer, President and CEO of Tele2 AB stated: "With more than 15 million customers in 21 countries Tele2 is the largest pan-European telecoms brand, and our strong growth in subscribers and revenue over the last twelve months illustrates how Tele2 as a price leader has been able to maintain growth when many of our competitors have seen sales growth weaken. The last twelve months has also seen an improvement in Tele2's profitability as we have reached critical mass in key markets across Europe and we are confident that the European fixed line businesses will reach EBITDA breakeven in 2002 in line with plans to do so within three years from launch in each country. For this reason our focus continues to be on customer acquisition at a low cost, churn management and operational cost control, and these internal actions will be complemented by the actions of Regulators across Europe who continue to cut interconnection rates. Therefore we expect that margin improvements will continue to be made."
FINANCIAL AND OPERATING HIGHLIGHTS
(The figures shown in parenthesis correspond to the comparable periods in 2000 and all negative amounts are distinguished with a minus sign).
Financial highlights 2001
-- Tele2's operating revenues were MSEK 25,085 for the twelve months
ended December 31, 2001, an increase of 54% over the pro forma
MSEK 16,243 reported in the same period last year.
-- The total number of subscribers at December 31, 2001 was 15.0
million, an increase of 29%.
-- EBITDA was MSEK 1,699 (-371). EBITDA was SEK 633 in the fourth
quarter a strong improvement against the previous year, (Q4 2000:
SEK - 379). The fourth quarter result was reduced in comparison
to the third quarter by the higher sales and marketing costs
associated from the large intake of new customers.
-- Tele2 Sweden's operating revenues were MSEK 9,060 for the twelve
months ended December 31, 2001 an increase of 14% over the same
period last year. EBITDA was MSEK 3,773 (2,728),an increase of
38%. The EBITDA margin was 42% in 2001 as against 34% in 2000.
Mobile telephony revenues were up 20% to MSEK 5,720 with EBITDA
up 41% to MSEK 3,111 giving a mobile margin of 54%.
-- In the fourth quarter there was a restructuring within the former
SEC Group and one of the effects of this reorganization was that
tax payable by the Group will be reduced by SEK 3.1 billion.
Operating highlights, 2001
Fourth quarter:
-- In October, Tele2 announced a review of its product range making
MSEK 80 cost savings per annum
-- Tele2 launched GPRS in Sweden in October.
-- Tele2 announced partnership with the Post Office in November to
provided fixed telephony services in UK
-- On December 1, 2001, Tele2 acquired FORA Telecom the mobile
business of Millicom International Cellular
-- Tele2 reached agreement with Viag Interkom in Germany to launch
an MVNO following on from the successful launch of an MVNO in the
Netherlands in August.
-- On December 31 Tele2 purchased the remaining part of Levicom
Broadband.
First, second and third quarters:
-- In January, Tele2 divested its 37% holding in Transcom Worldwide
S.A to Industriforvaltnings AB Kinnevik
-- In March, Tele2 signed agreement to form a jointly owned UMTS-
network company with Telia
-- In August, Tele2 finalised a 5 year new amortizing senior debt
facility of Euro 1.2 billion
-- In September, Tele2 Norge acquired Enitel AS's private and
corporate fixed telephony and dial-up internet subscribers
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