Tele2 reported on Wednesday a 29 percent rise in core earnings, beating market expectations as the firm's key mobile operations strengthened.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose to 2.07 billion Swedish crowns ($348 million) from 1.60 billion a year earlier, the telecom operator said in a statement.

That compared with forecasts for 1.92 billion, according to the mean average in a Reuters poll of 11 analysts.

Tele2's realignment process will continue and unprofitable businesses would either improve or be disposed of, Chief Executive Lars-Johan Jarnheimer said.

But he also signalled interest in further acquisitions, adding, "We will look for complementary assets, built on mobile services, especially in our emerging market footprint."

Jarnheimer said mobile operations showed a robust performance despite a competitive environment.

"Russia, Sweden, Croatia and the Baltic all showed strong customer intake. Tele2 Russia once again managed to improve profitability and delivered an EBITDA margin of 36 percent."

The Russia margin was up slightly from 35 percent in the first quarter and 33 percent in the year-earlier period. 

Tele2 added 751,000 customers in mobile operations during the quarter, although group customer intake was 340,000, reflecting continued loss of fixed-line subscribers.

The company's fixed broadband operations added 4,000 customers during the quarter. Revenue grew by 15 percent while that segment had an EBITDA margin of minus one percent. ($1=5.947 Swedish Crown)

Source:reuters