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Stockholm (pte031/25.04.2005/13:00) - Swedish telecoms operator Tele2 http://www.tele2.com has announced that it will step up marketing and expansion in Europe after reporting a sharp drop in first-quarter profits and fewer new customers compared to the same period a year earlier. As the company reports in a press release on its website, its revenue increased by 12 per cent to 11.5 billion Swedish Krone (12.6 million euros), while its profit dropped from 678 million (74 million euros) to 483 million Swedish Krone (52.75 million euros). 300,000 customers signed up to Tele2's fixed subscription in Sweden in the first quarter of 2005, the company said.
"Tele2 showed good revenue growth in the first quarter, up 12 per cent compared to last year and a solid performance in profitability and Cash-Flow, taking into account the impact of wholesale line rental, UMTS-payments and integration costs in Austria, corresponding to a total of 185 million Swedish Krone (20.2 million euros), as well as our new product offerings," said Lars-Johan Jarnheimer, the president and CEO of Tele2. According to Jarnheiner, during the quarter, Tele2 completed the integration of UTA in Austria and Tiscali in Denmark, and is in an "excellent competitive position in both countries".
Two areas that performed well were Central Europe, with a continued strong intake and a steady underlying financial performance, and Swedish mobile, with an excellent intake, especially of postpaid customers, Jarnheimer said. "In April, we made important progress on two fronts in France. The first is a long awaited MVNO with Orange, in the form of an enhanced service provider agreement. The second is a letter of intent with Neuf Telecom, giving us access to the most comprehensive ULL network in France. In combination, these two agreements give us a more competitive product offering and excellent growth opportunities," he added.
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