Tele2 AB reports 9-month operating profit of SEK4.56bn

Nordic Business Report, Nov 1, 2006

NORDIC BUSINESS REPORT-1 November 2006-Tele2 AB reports 9-month operating profit of SEK4.56bn(C)1994-2006 M2 COMMUNICATIONS LTD http://www.m2.com

The Swedish-based European telecomms operator Tele2 AB reported on Wednesday (1 November) an operating profit (EBITDA) of SEK4.56bn on operating revenue of SEK40.7bn for the financial period January-September 2006.

Operating profit for the nine-month period decreased from SEK4.98bn while operating revenue increased from SEK36.0bn, as compared to the corresponding period in 2005.

Operating profit (EBITDA) for the third quarter of 2006 amounted to SEK1.8bn, with operating revenues of SEK13.7bn. Mobile revenues were up 32% to SEK5.1bn.

Lars-Johan Jarnheimer, CEO of Tele2 AB, said that the company has reviewed its market position and has decided on further investments in mobile network operations in Sweden, Russia, the Baltic states and Croatia as well as broadband in selected markets.

New investments will be primarily focused on core geographical markets and services where Tele2 can achieve necessary scale to create long-term successful businesses, the CEO added.

The company also said that it would intensify its marketing efforts in the fourth quarter, primarily in mobile and broadband, in order to increase broadband intake and to continue the positive strides the company has been making in its mobile businesses.

Tele2, headquartered in Stockholm, Sweden, has more than 30 million customers in 22 countries. In 2005 the company reported revenues of SEK50bn. Tele2 is listed on the Nordic Exchange in Stockholm.

One British pound (GBP) is worth approximately 13.70 Swedish kronor (SEK).

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