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Report
First
Quarter
2016
Q1 2016 HIGHLIGHTS
6,446
SEK million
EBITDA Q12016
1,226
SEK million
2016
2015
Net sales
6,446
6,511
6,583
6,484
3,168
3,184
3,274
3,147
EBITDA
1,226
1,428
14
1,232
1,440
14
155
702
78
EBIT
EBIT excluding one-off items (Note 3)
520
716
27
Net profit
339
517
34
0.83
1.15
28
The figures presented in this report refer to Q1 2016 and continuing operations unless otherwise stated. The figures shown in
parentheses refer to the comparable periods in 2015.
1) Like for like (LFL) = pro forma, constant currency
Financial Overview
Tele2s financial performance is driven by a consistent focus on developing mobile services on own
infrastructure, complemented in certain countries by fixed broadband services and business to
business offerings. In addition to investing in mobile, the Group will concentrate on maximizing the
return from fixed-line services.
Net sales
EBITDA/EBITDA margin
SEK million
SEK million/Percent
8,000
2,000
6,000
1,500
4,000
1,000
50
40
30
20
2,000
0
500
Q1
2015
Q2
Q3
Q4
Q1
2016
10
Q1
2015
Q2
Q3
Q4
Q1
2016
FINANCIAL SUMMARY
SEK million
Q1,2016
Q1,2015
FY 2015
Mobile
Net customer intake (thousands)
Net sales
EBITDA
EBIT1)
CAPEX
43
4,959
850
357
724
318
4,825
1,022
533
608
1,126
20,446
4,247
2,241
3,024
Fixed broadband
Net customer intake (thousands)
Net sales
EBITDA
EBIT1)
CAPEX
6
944
196
24
304
20
1,037
225
49
166
57
3,956
788
102
636
Fixed telephony
Net customer intake (thousands)
Net sales
EBITDA
EBIT1)
CAPEX
46
278
96
84
7
63
349
114
97
12
199
1,281
432
374
35
9
6,446
1,226
520
155
1,154
235
6,511
1,428
716
702
938
870
26,856
5,757
2,890
2,447
4,227
504
339
953
953
154
154
675
517
839
889
131
96
2,012
1,268
3,481
3,529
519
486
Total
Net customer intake (thousands)
Net sales
EBITDA
EBIT excluding one-off items (Note 3)
EBIT
CAPEX
EBT
Net profit
Cash flow from operating activities, continuing operations
Cash flow from operating activities
Free cash flow, continuing operations
Free cash flow
1) Excluding one-off items (Note 3)
Mobile
77%
Fixed telephony
4%
Sweden
47%
Austria
Fixed broadband
15%
Other
4%
Netherlands
22%
Latvia
4%
4%
Lithuania
6%
Germany
3%
Kazhakstan
6%
Estonia
2%
Croatia
5%
Other
1%
Financial guidance
Tele2 AB gives the following guidance for 2016 for continuing
operations in constant currency:
Balance sheet
Overview by country
Constant currency basis
Net sales
SEK million
EBITDA
2016 Q1
2015 Q1
Growth
Sweden
Netherlands
Kazakhstan
Croatia
Lithuania
Latvia
Estonia
Austria
Germany
Other
Total, constant FX
3,053
1,441
350
316
381
232
157
285
187
44
6,446
3,130
1,394
210
304
331
215
169
298
223
34
6,308
2%
3%
67%
4%
15%
8%
7%
4%
16%
29%
2%
FX effects
Total
6,446
203
6,511
3%
1%
Sweden
Total net sales in Q1 2016 was SEK 3,053 (3,130) million and EBITDA
amounted to SEK 894 (976) million.
Mobile end-user service revenue was slightly negative, with
a continued positive development within the consumer segment
and a solid momentum within B2B large enterprise, whilst fierce
competition is impacting the SME segment negatively. During the
quarter, Tele2 accelerated its efforts to regain momentum in the
Tele2 brand, in particular to improve the development within the
B2B SME segment.
In the quarter, Tele2 continued to expand its 2G and 4G mobile
network coverage to ensure that our customers, wherever they are,
have an excellent mobile experience. Customer satisfaction in customer service has increased to a higher level reaching 85 percent in
the quarter which equals world class benchmark.
Mobile in Q1 2016, customer net intake was 41,000 (43,000)
customers mainly due to a decline in prepaid. Net sales amounted
to SEK 2,729 (2,766) million. Mobile end-user service revenue
declined to SEK 1,797 (1,809) million, negatively impacted primarily
by the price aggression in the B2B SME segment, however mitigated
by a continued positive development within the consumer segment. Due to intense competition within B2B SME, which has had
a negative impact on Tele2s revenue development, the company
has accelerated initiatives to regain momentum in this segment
and early signs indicate a positive trend. EBITDA amounted to SEK
817 (893) million, affected by those increased sales and marketing
initiatives and comparing to a lower investment period in the first
quarter previous year.
Fixed broadband Customer net intake amounted to 3,000
(5,000) customers. Net sales decreased with 8 percent and
amounted to SEK 173 (188) million. EBITDA contribution amounted
to SEK 20 (33) million.
Fixed telephony Tele2 saw a continued decrease in demand for
fixed telephony as a consequence of the ongoing shift to mobile telephony. The EBITDA contribution in the quarter amounted to SEK 33
(41) million.
2016 Q1
2015 Q1
Growth
Sweden
Netherlands
Kazakhstan
Croatia
Lithuania
Latvia
Estonia
Austria
Germany
Other
Total, constant FX
SEK million
894
31
6
11
142
69
35
50
74
24
1,226
976
140
21
124
68
38
50
32
23
1,426
8%
122%
48%
15%
1%
8%
131%
4%
14%
FX effects
Total
1,226
2
1,428
0%
14%
Netherlands
Total net sales in Q1 2016 was SEK 1,441 (1,402) million and EBITDA
amounted to SEK 31 (141) million.
Mobile end-user service revenue grew as a result of an increased
number of customers, and a shift to more 4G customers. The quarter
showed an increasing interest in Tele2s 4G-services resulting in
an increase in customer net intake in both residential and B2B customers. During the quarter, Tele2 started selling the iPhone and is
now offering a full range of premium VoLTE (Voice over LTE) enabled
handsets in all its sales channels. Furthermore, the company introduced a new 4G SIM-only line up. At the end of the quarter the
first customers started to use Voice over LTE, making Tele2 the first
4G-only operator in the world.
Tele2 continued to expand its LTE Advanced 4G network which
has now reached a 97 percent outdoor population coverage and
indoor population coverage of 78 percent.
During the quarter the research company P3 conducted a benchmark in which Tele2s network was graded a 9 out of 10, whilst still
in roll-out phase, this puts Tele2 already on par with the other three
MNOs in the market, and one of the best in the World.
Mobile Customer net intake in the quarter amounted to 31,000
(21,000) customers, ramping up towards the latter part of the
quarter as a result of the iPhone launch and the new SIM-only
proposition. Net sales grew 25 percent and amounted to SEK 691
(553) million. Mobile end-user service revenue grew 6 percent and
amounted to SEK 322 (305) million. EBITDA, which is impacted negatively by the costs associated with mobile growth and further network rollout amounted to SEK 243 (106) million, including a positive non-recurring item of SEK 47 million related to the settlement of
a new property lease agreement on our Dutch headoffice (Note 3).
Fixed broadband With a growing VULA high speed broadband
footprint, Tele2 was able to reverse the negative trend in customer
intake resulting in net intake of 1,000 (9,000) customers. EBITDA
amounted to SEK 124 (161) million, including a positive non-recurring item of SEK 19 million. Within the B2B segment, Tele2
signed a framework agreement with VNG (the Association of Dutch
Municipalities).
Kazakhstan
Croatia
Mobile Customer net intake amounted to 7,000 (24,000) customers, with an increase in the postpaid customer segment, but the
overall customer base declined as a result of higher prepaid seasonal churn.
Net sales increased by 4 percent and amounted to SEK 316 (303)
million due to higher end-user service revenue as well as higher
equipment sales.
Mobile end-user service revenue increased by 3 percent and was
SEK 202 (197) million.
EBITDA in the quarter was SEK 11 (21) million, negatively
affected by higher spectrum fees and higher investment in
marketing.
During the quarter the company focused on the final implementation and launch of 4G, offering 4G to 90 percent of the population.
This follows the 3G network upgrade completed in the previous
quarter. Towards the end of the quarter, Tele2 launched a complete
redesign of its postpaid tariff portfolio providing customers with
flexible and simple products that they can easily control. Together
with the new postpaid portfolio, Tele2 introduced new marketing
communication platforms and a new Tele2 store concept.
Lithuania
revenue grew with 8 percent compared to the same period last year
and amounted to SEK 226 (210) million due to increased data usage
and demand for additional services.
EBITDA grew 15 percent and amounted to SEK 142 (125) million.
EBITDA margin was 37 (38) percent, slightly affected by increased
sales of low margin handsets.
During the quarter, the company secured vital 900/1800 MHz
spectrum bands and is the first in Lithuania to receive an e-money
license from the Central Bank. At the end of the quarter Tele2
announced its agreement with Apple, allowing the company to extend
its handset portfolio with the iPhone.
Latvia
Estonia
Austria
Germany
Other items
Risks and uncertainty factors
Company disclosure
Tele2 AB (publ) Annual General Meeting 2016
The 2016 Annual General Meeting will be held on Tuesday 24
May 2016 at 10.00 a.m. CET at the Hotel Rival, Mariatorget 3 in
Stockholm.
Shareholders who wish to attend the Annual General Meeting
shallbe
entered in the share register maintained by Euroclear Sweden
on Wednesday 18 May 2016,
give notice of their attendance no later than Wednesday 18 May
2016, preferably before 1.00 p.m. CET. Notice to attend is to be
made on the companys website at www.tele2.com, by telephone to +46 (0) 771 246 400 or by mail to Computershare AB
AGM Tele2, P.O. Box 610, SE-182 16 Danderyd, Sweden.
Other
Tele2 will release its financial and operating results for the period
ending June 30, 2016 on July 21, 2016.
Q1 2016 PRESENTATION
Tele2 will host a presentation with the possibility to join through a conference call, for the
global financial community at 10:00 am CEST (09:00 am BST/04:00 am EDT) on Thursday,
April 21, 2016. The presentation will be held in English and also made available as a webcast on Tele2s website: www.tele2.com.
Dial-in information
To ensure that you are connected to the conference call, please dial in a few minutes
before the start of the conference call to register your attendance.
Dial-in numbers
Sweden: +46(0)8 5065 3937
UK: +44(0)20 3427 1908
US: +1646 254 3367
CONTACTS
Louise Tjeder
Head of IR
Telephone: + 46 (0) 70 426 46 52
Tele2 AB
Company registration nr: 556410-8917
Skeppsbron 18
P.O. Box 2094
SE103 13 Stockholm
Sweden
Tel + 46 (0)8 5620 0060
www.tele2.com
VISIT OUR WEBSITE: www.tele2.com
APPENDICES
Income statement
Comprehensive income
Balance sheet
Cash flow statement
Change in equity
Numbers of customers
Net sales
Mobile external net sales split
EBITDA
EBIT
CAPEX
Five-year summary
Parent company
Notes
TELE2 IS ONE OF EUROPES FASTEST GROWING TELECOM OPERATORS, ALWAYS PROVIDING CUSTOMERS WITH WHAT THEY NEED FOR LESS.
We have 16 million customers in 9 countries. Tele2 offers mobile services, fixed broadband and telephony, data network services, content services and global M2M/IoT solutions. Ever since Jan Stenbeck founded the company in 1993, it has been a tough challenger to
the former government monopolies and other established providers. Tele2 has been listed on the NASDAQ OMX Stockholm since 1996.
In 2015, we had net sales of SEK 27 billion and reported an operating profit (EBITDA) of SEK 5.8 billion.
Income statement
SEK million
2016
Jan 1-Mar 31
2015
Jan 1-Mar 31
2015
Full year
2
3
6,446
4,315
2,131
6,511
3,940
2,571
26,856
16,653
10,203
3
3
11
1,376
620
37
17
155
1,260
646
86
49
702
5,094
2,917
5
401
141
2,447
Note
CONTINUING OPERATIONS
Net sales
Cost of services provided
Gross profit
Selling expenses
Administrative expenses
Result from shares in joint ventures and associated companies
Other operating income
Other operating expenses
Operating profit, EBIT
Interest income/costs
Other financial items
Profit after financial items, EBT
4
5
69
418
504
100
73
675
376
59
2,012
Income tax
NET PROFIT FROM CONTINUING OPERATIONS
165
339
158
517
744
1,268
11
339
1,717
2,234
1,718
2,986
11
371
32
339
2,234
2,234
2,986
2,986
10
10
0.83
0.83
5.01
4.98
6.69
6.65
371
32
339
517
517
1,268
1,268
0.83
0.83
1.16
1.15
2.84
2.82
DISCONTINUED OPERATIONS
Net profit/loss from discontinued operations
NET PROFIT
ATTRIBUTABLE TO
Equity holders of the parent company
Non-controlling interests
NET PROFIT
Earnings per share (SEK)
Earnings per share, after dilution (SEK)
10
10
Comprehensive income
2016
Jan 1-Mar 31
2015
Jan 1-Mar 31
2015
Full year
339
2,234
2,986
5
1
4
38
9
29
102
10
112
190
144
18
316
1,420
305
19
1,096
36
8
28
84
102
22
107
187
503
49
11
107
145
1,241
47
15
7
25
28
19
2
7
40
83
10
33
59
510
1,208
55
510
1,179
394
1,724
1,807
424
30
394
1,724
1,724
1,807
1,807
SEK million
Note
NET PROFIT
OTHER COMPREHENSIVE INCOME
COMPONENTS NOT TO BE RECLASSIFIED TO NET PROFIT
Pensions, actuarial gains/losses
Pensions, actuarial gains/losses, tax effect
Components not to be reclassified to net profit
COMPONENTS THAT MAY BE RECLASSIFIED TO NET PROFIT
Exchange rate differences
Translation differences in foreign operations
Tax effect on above
Reversed cumulative translation differences from divested companies
Translation differences
Hedge of net investments in foreign operations
Tax effect on above
Reversed cumulative hedge from divested companies
Hedge of net investments
Exchange rate differences
5
11
11
11
Balance sheet
SEK million
Note
8,393
4,790
13,183
12,667
1,304
2,011
29,165
9,391
4,811
14,202
11,408
1,599
1,927
29,136
8,661
4,437
13,098
11,592
1,463
1,964
28,117
622
7,202
33
184
8,041
616
5,932
37
2,886
9,471
692
7,201
32
107
8,032
37,206
38,607
36,149
19,475
11
19,464
24,424
2
24,426
17,901
17,901
4
6
4,798
733
5,531
5,420
438
5,858
5,619
697
6,316
5,913
6,298
12,211
1,866
6,457
8,323
5,372
6,560
11,932
37,206
38,607
36,149
ASSETS
NON-CURRENT ASSETS
Goodwill
Other intangible assets
Intangible assets
Tangible assets
Financial assets
Deferred tax assets
NON-CURRENT ASSETS
CURRENT ASSETS
Inventories
Current receivables
Current investments
Cash and cash equivalents
CURRENT ASSETS
4
6
ASSETS
EQUITY AND LIABILITIES
EQUITY
Attributable to equity holders of the parent company
Non-controlling interests
EQUITY
NON-CURRENT LIABILITIES
Interest-bearing liabilities
Non-interest-bearing liabilities
NON-CURRENT LIABILITIES
CURRENT LIABILITIES
Interest-bearing liabilities
Non-interest-bearing liabilities
CURRENT LIABILITIES
10
2016
2015
Note Jan 1-Mar 31 Jan 1-Mar 31
SEK million
OPERATING ACTIVITIES
Operating profit from continuing operations
Operating profit/loss from discontinued operations
Operating profit
Adjustments for non-cash items in operating profit
Financial items paid/received
Taxes paid
Cash flow from operations before changes in
working capital
Changes in working capital
CASH FLOW FROM OPERATING ACTIVITIES
INVESTING ACTIVITIES
CAPEX paid
Free cash flow
Acquisition and sale of shares and participations
Other financial assets
Cash flow from investing activities
CASH FLOW AFTER INVESTING ACTIVITIES
FINANCING ACTIVITIES
Change of loans, net
Dividends
Acquisition of non-controlling interests
Other financing activities
Cash flow from financing activities
NET CHANGE IN CASH AND CASH EQUIVALENTS
Cash and cash equivalents at beginning of period
Exchange rate differences in cash and cash
equivalents
CASH AND CASH EQUIVALENTS AT
END OF THE PERIOD
8
11
4
10
10
2015
Full year
2016
Q1
2015
Q4
2015
Q3
2015
Q2
2015
Q1
2014
Q4
155
155
702
1,701
2,403
2,447
1,702
4,149
155
155
364
364
788
788
593
1
594
702
1,701
2,403
735
72
663
1,033
46
67
977
203
115
1,271
470
349
1,033
46
67
736
62
62
778
129
68
734
76
104
977
203
115
773
37
93
1,075
122
953
1,108
219
889
4,601
1,072
3,529
1,075
122
953
976
194
782
1,369
255
1,114
1,148
404
744
1,108
219
889
1,380
58
1,322
1,107
154
39
1,068
115
985
96
4,891
3,906
4,795
4,015
486
4,893
28
850
4,379
1,107
154
39
1,068
115
1,073
291
29
1,102
320
945
169
7
938
176
1,012
268
5
1
1,016
272
985
96
4,891
3,906
4,795
1,084
238
18
252
1,354
32
295
125
170
55
1,998
1,998
2,797
2,276
6,626
2
4,352
27
295
125
170
55
228
228
92
257
257
81
4,303
6,626
2
2,325
2,597
1,998
1,998
2,797
308
308
340
107
151
151
107
204
309
2,886
151
418
22
62
71
22
24
20
62
73
184
2,886
107
184
107
204
309
2,886
151
Change in equity
SEK million
Note
Equity, January 1
Net profit/loss for the period
Other comprehensive income for
the period, net of tax
Total comprehensive income for
the period
OTHER CHANGES IN EQUITY
Share-based payments
Share-based payments, tax effect
New share issues
Repurchase of own shares
Dividends
Acquisition of non-controlling interests
Divestment to non-controlling interests
EQUITY, END OF THE PERIOD
10
10
10
10
10
10
10
Total
equity
Total
equity
Total
equity
17,901
17,901
22,680
22,682
22,680
22,682
371
32
339
2,234
2,234
2,986
2,986
53
55
510
510
1,179
1,179
424
30
394
1,724
1,724
1,807
1,807
456
687
19,475
475
456
11
931
231
19,464
21
1
24,424
21
1
24,426
40
3
3
6,626
17,901
40
3
3
6,626
2
17,901
Number of customers
by thousands
Note
Sweden
Mobile
Fixed broadband
Fixed telephony
2015
Full year
Net intake
2016
2015
Q1
Q4
2015
Q3
2015
Q2
2015
Q1
2014
Q4
3,700
67
187
3,954
3,644
52
222
3,918
41
3
9
53
43
5
10
58
120
15
46
59
41
3
9
53
27
3
13
11
84
2
12
70
52
5
11
36
43
5
10
58
58
7
11
76
875
345
51
1,271
834
360
69
1,263
31
1
4
28
21
9
6
6
31
25
20
14
31
1
4
28
3
4
4
5
7
5
12
7
5
5
3
21
9
6
6
22
1
10
13
6,298
6,298
3,725
3,725
110
110
428
428
1,103
1,103
110
110
38
38
166
166
471
471
428
428
205
205
778
778
799
799
7
7
24
24
16
16
7
7
78
78
67
67
19
19
24
24
54
54
1,751
1,751
1,763
1,763
18
18
47
47
68
68
18
18
37
37
16
16
47
47
40
40
945
945
964
964
13
13
11
11
17
17
13
13
27
27
11
11
10
10
11
11
28
28
479
1
480
484
3
487
5
2
7
5
2
7
100
126
226
107
141
248
2
5
7
1
7
8
6
17
23
2
5
7
2
3
5
2
3
5
1
4
5
1
7
8
2
4
6
205
51
261
517
240
59
363
662
14
2
26
42
2
5
40
47
23
11
116
150
14
2
26
42
12
2
35
49
13
2
51
66
4
2
10
12
2
5
40
47
9
2
26
19
15,031
563
626
12,453
578
798
43
6
46
318
20
63
1,126
57
199
43
6
46
88
11
55
333
13
71
563
13
10
318
20
63
50
10
51
16,220
13,829
235
870
154
249
540
235
11
11
1,788
1,788
27
50
27
22
28
1,806
235
820
1,806
176
249
512
235
11
Netherlands
Mobile
Fixed broadband
Fixed telephony
Kazakhstan
Mobile
Croatia
Mobile
Lithuania
Mobile
Latvia
Mobile
Estonia
Mobile
Fixed telephony
Austria
Fixed broadband
Fixed telephony
Germany
Mobile
Fixed broadband
Fixed telephony
TOTAL
Mobile
Fixed broadband
Fixed telephony
TOTAL NUMBER OF
CUSTOMERS AND NET
INTAKE
Acquired companies
Changed method of
calculation
TOTAL NUMBER OF
CUSTOMERS AND NET
CHANGE
Number of
customers
2016
2015
2016
2015
Mar 31
Mar 31 Jan 1Mar 31 Jan 1Mar 31
16,220
13,829
Net sales
SEK million
Note
Sweden
Mobile
Fixed broadband
Fixed telephony
Other operations
Netherlands
Mobile
Fixed broadband
Fixed telephony
Other operations
Kazakhstan
Mobile
Croatia
Mobile
Lithuania
Mobile
Latvia
Mobile
Estonia
Mobile
Fixed telephony
Other operations
Austria
Fixed broadband
Fixed telephony
Other operations
Germany
Mobile
Fixed broadband
Fixed telephony
Other
Mobile
Other operations
TOTAL
Mobile
Fixed broadband
Fixed telephony
Other operations
Internal sales, elimination
Sweden, mobile
Lithuania, mobile
Latvia, mobile
Estonia, mobile
Netherlands, other operations
Other, other operations
TOTAL
2016
Jan 1Mar 31
2015
Jan 1Mar 31
2015
Full year
2016
Q1
2015
Q4
2015
Q3
2015
Q2
2015
Q1
2014
Q4
2,729
173
119
32
3,053
2,767
188
146
30
3,131
11,228
715
541
147
12,631
2,729
173
119
32
3,053
2,953
179
125
42
3,299
2,764
172
131
33
3,100
2,744
176
139
42
3,101
2,767
188
146
30
3,131
3,006
187
153
35
3,381
691
546
71
137
1,445
553
615
92
142
1,402
2,535
2,326
333
552
5,746
691
546
71
137
1,445
747
557
75
134
1,513
643
576
82
139
1,440
592
578
84
137
1,391
553
615
92
142
1,402
567
626
97
143
1,433
350
350
399
399
1,754
1,754
350
350
383
383
497
497
475
475
399
399
382
382
316
316
303
303
1,429
1,429
316
316
416
416
377
377
333
333
303
303
372
372
386
386
336
336
1,539
1,539
386
386
405
405
417
417
381
381
336
336
358
358
233
233
218
218
948
948
233
233
248
248
250
250
232
232
218
218
238
238
146
1
10
157
142
1
28
171
608
7
62
677
146
1
10
157
155
2
11
168
159
2
12
173
152
2
11
165
142
1
28
171
142
2
10
154
193
33
59
285
195
39
66
300
775
146
267
1,188
193
33
59
285
192
35
62
289
196
36
70
302
192
36
69
297
195
39
66
300
199
41
71
311
101
32
54
187
114
39
71
224
437
140
254
831
101
32
54
187
102
32
59
193
109
35
61
205
112
34
63
209
114
39
71
224
116
39
74
229
13
33
46
36
36
153
153
13
33
46
37
37
40
40
40
40
36
36
33
33
4,965
944
278
271
6,458
12
5
1
4
2
6,446
4,832
1,037
349
302
6,520
9
1
3
2
1
2
6,511
20,478
3,956
1,281
1,181
26,896
40
1
20
9
2
2
6
26,856
4,965
944
278
271
6,458
12
5
1
4
2
6,446
5,409
960
296
286
6,951
8
4
2
1
1
6,943
5,216
979
312
294
6,801
10
5
3
2
6,791
5,021
980
324
299
6,624
13
8
2
1
1
1
6,611
4,832
1,037
349
302
6,520
9
1
3
2
1
2
6,511
5,181
1,051
367
292
6,891
15
8
3
2
1
1
6,876
Note
Sweden, mobile
End-user service revenue
Operator revenue
Service revenue
Equipment revenue
Other revenue
Netherlands, mobile
End-user service revenue
Operator revenue
Service revenue
Equipment revenue
Kazakhstan, mobile
End-user service revenue
Operator revenue
Service revenue
Equipment revenue
Croatia, mobile
End-user service revenue
Operator revenue
Service revenue
Equipment revenue
Lithuania, mobile
End-user service revenue
Operator revenue
Service revenue
Equipment revenue
Latvia, mobile
End-user service revenue
Operator revenue
Service revenue
Equipment revenue
Estonia, mobile
End-user service revenue
Operator revenue
Service revenue
Equipment revenue
Germany, mobile
End-user service revenue
Equipment revenue
Other, mobile
End-user service revenue
TOTAL, MOBILE
End-user service revenue
Operator revenue
Service revenue
Equipment revenue
Other revenue
TOTAL, MOBILE
2016
Jan 1Mar 31
2015
Jan 1Mar 31
2015
Full year
2016
Q1
2015
Q4
2015
Q3
2015
Q2
2015
Q1
2014
Q4
1,797
218
2,015
546
168
2,729
1,809
211
2,020
584
162
2,766
7,368
956
8,324
2,272
631
11,227
1,797
218
2,015
546
168
2,729
1,841
245
2,086
706
161
2,953
1,889
246
2,135
482
147
2,764
1,829
254
2,083
500
161
2,744
1,809
211
2,020
584
162
2,766
1,856
225
2,081
759
158
2,998
322
43
365
326
691
305
40
345
208
553
1,404
169
1,573
962
2,535
322
43
365
326
691
403
42
445
302
747
364
44
408
235
643
332
43
375
217
592
305
40
345
208
553
301
38
339
228
567
265
80
345
5
350
315
80
395
4
399
1,287
451
1,738
16
1,754
265
80
345
5
350
253
127
380
3
383
348
145
493
4
497
371
99
470
5
475
315
80
395
4
399
280
98
378
4
382
202
46
248
68
316
197
43
240
63
303
839
208
1,047
382
1,429
202
46
248
68
316
207
36
243
173
416
225
74
299
78
377
210
55
265
68
333
197
43
240
63
303
205
66
271
101
372
226
55
281
100
381
210
46
256
77
333
886
198
1,084
435
1,519
226
55
281
100
381
224
50
274
127
401
230
51
281
131
412
222
51
273
100
373
210
46
256
77
333
207
50
257
98
355
140
49
189
43
232
137
46
183
33
216
580
185
765
174
939
140
49
189
43
232
146
47
193
53
246
152
46
198
49
247
145
46
191
39
230
137
46
183
33
216
144
46
190
46
236
102
16
118
28
146
97
17
114
27
141
412
70
482
124
606
102
16
118
28
146
106
17
123
32
155
106
18
124
35
159
103
18
121
30
151
97
17
114
27
141
96
13
109
33
142
101
101
114
114
436
1
437
101
101
102
102
108
1
109
112
112
114
114
116
116
13
13
13
13
3,168
507
3,675
1,116
168
4,959
3,184
483
3,667
996
162
4,825
13,212
2,237
15,449
4,366
631
20,446
3,168
507
3,675
1,116
168
4,959
3,282
564
3,846
1,396
161
5,403
3,422
624
4,046
1,015
147
5,208
3,324
566
3,890
959
161
5,010
3,184
483
3,667
996
162
4,825
3,205
536
3,741
1,269
158
5,168
EBITDA
SEK million
Note
Sweden
Mobile
Fixed broadband
Fixed telephony
Other operations
Netherlands
Mobile
Fixed broadband
Fixed telephony
Other operations
2-3
3
3
3
Kazakhstan
Mobile
Croatia
Mobile
Lithuania
Mobile
Latvia
Mobile
Estonia
Mobile
Fixed telephony
Other operations
Austria
Mobile
Fixed broadband
Fixed telephony
Other operations
Germany
Mobile
Fixed broadband
Fixed telephony
Other
Mobile
Other operations
TOTAL
Mobile
Fixed broadband
Fixed telephony
Other operations
TOTAL
2016
Jan 1Mar 31
2015
Jan 1Mar 31
2015
Full year
2016
Q1
2015
Q4
2015
Q3
2015
Q2
2015
Q1
2014
Q4
817
20
33
24
894
893
33
41
9
976
3,515
96
166
67
3,844
817
20
33
24
894
841
17
56
32
946
938
28
34
14
1,014
843
18
35
12
908
893
33
41
9
976
792
16
44
28
880
243
124
18
70
31
106
161
18
68
141
410
545
50
260
445
243
124
18
70
31
150
116
7
62
35
83
128
12
65
122
71
140
13
65
147
106
161
18
68
141
78
169
20
62
173
6
6
54
54
6
6
5
5
50
50
9
9
17
17
11
11
21
21
138
138
11
11
29
29
54
54
34
34
21
21
39
39
142
142
125
125
538
538
142
142
138
138
143
143
132
132
125
125
128
128
69
69
68
68
295
295
69
69
78
78
79
79
70
70
68
68
82
82
33
2
35
29
1
8
38
133
3
20
156
33
2
35
37
4
41
37
1
3
41
30
1
5
36
29
1
8
38
49
1
5
55
15
46
17
2
50
3
26
22
5
50
30
126
83
24
203
15
46
17
2
50
14
36
20
7
49
6
40
21
6
61
7
24
20
6
43
3
26
22
5
50
2
33
26
5
62
40
6
28
74
5
5
32
32
14
21
130
165
40
6
28
74
18
6
36
60
10
5
32
47
9
5
30
26
5
5
32
32
10
6
35
31
10
14
24
23
23
81
81
10
14
24
34
34
12
12
12
12
23
23
55
55
850
196
96
84
1,226
1,022
225
114
67
1,428
4,247
788
432
290
5,757
850
196
96
84
1,226
972
175
119
71
1,337
1,222
201
100
76
1,599
1,031
187
99
76
1,393
1,022
225
114
67
1,428
1,017
224
126
45
1,412
EBIT
SEK million
Note
Sweden
Mobile
Fixed broadband
Fixed telephony
Other operations
Netherlands
Mobile
Fixed broadband
Fixed telephony
Other operations
23
3
3
3
Kazakhstan
Mobile
Croatia
Mobile
Lithuania
Mobile
Latvia
Mobile
Estonia
Mobile
Fixed telephony
Other operations
Austria
Mobile
Fixed broadband
Fixed telephony
Other operations
Germany
Mobile
Fixed broadband
Fixed telephony
Other
Mobile
Other operations
TOTAL
Mobile
Fixed broadband
Fixed telephony
Other operations
One-off items
TOTAL
2016
Jan 1Mar 31
2015
Jan 1Mar 31
2015
Full year
2016
Q1
2015
Q4
2015
Q3
2015
Q2
2015
Q1
2014
Q4
574
4
29
15
614
647
11
35
4
697
2,544
15
148
40
2,747
574
4
29
15
614
589
5
51
20
655
711
16
31
12
770
597
7
31
4
625
647
11
35
4
697
515
8
40
18
565
328
14
54
260
155
30
13
52
60
669
42
29
193
405
328
14
54
260
223
1
2
46
176
154
1
7
47
99
137
12
7
48
70
155
30
13
52
60
109
46
16
45
2
57
57
89
89
225
225
57
57
59
59
16
16
61
61
89
89
53
53
6
6
7
7
20
20
6
6
13
13
10
10
10
10
7
7
16
16
116
116
106
106
445
445
116
116
110
110
119
119
110
110
106
106
112
112
35
35
43
43
173
173
35
35
43
43
50
50
37
37
43
43
54
54
13
1
2
10
1
1
4
6
30
3
9
42
13
1
2
10
5
13
13
1
1
13
8
1
1
10
1
1
4
6
24
1
25
18
24
14
2
18
3
4
16
2
19
34
29
66
6
67
18
24
14
2
18
17
11
16
1
11
7
16
17
2
28
7
2
17
1
9
3
4
16
2
19
2
11
16
25
38
4
28
70
10
4
32
26
3
16
128
141
38
4
28
70
16
4
37
57
2
4
31
37
11
4
28
21
10
4
32
26
19
6
33
20
10
10
20
25
25
75
75
10
10
20
39
39
4
4
7
7
25
25
58
58
357
24
84
55
520
533
49
97
37
716
2,241
102
374
173
2,890
357
24
84
55
520
454
9
106
33
602
728
37
87
56
908
526
7
84
47
664
533
49
97
37
716
538
55
106
5
704
365
155
14
702
443
2,447
365
155
238
364
120
788
71
593
14
702
31
735
CAPEX
SEK million
Note
Sweden
Mobile
Fixed broadband
Fixed telephony
Other operations
Netherlands
Mobile
Fixed broadband
Fixed telephony
Other operations
Kazakhstan
Mobile
Croatia
Mobile
Lithuania
Mobile
Latvia
Mobile
Estonia
Mobile
Other operations
Austria
Mobile
Fixed broadband
Fixed telephony
Other operations
Germany
Mobile
Fixed broadband
Other
Other operations
TOTAL
Mobile
Fixed broadband
Fixed telephony
Other operations
TOTAL
2016
Jan 1Mar 31
2015
Jan 1Mar 31
2015
Full year
2016
Q1
2015
Q4
2015
Q3
2015
Q2
2015
Q1
2014
Q4
179
18
1
3
201
129
9
2
2
142
664
95
12
13
784
179
18
1
3
201
185
50
3
3
241
135
16
4
4
159
215
20
3
4
242
129
9
2
2
142
220
8
2
3
233
214
278
5
22
519
236
139
4
22
401
1,210
471
15
77
1,773
214
278
5
22
519
332
140
4
21
497
315
68
3
12
398
327
124
4
22
477
236
139
4
22
401
313
118
7
13
451
79
79
119
119
532
532
79
79
154
154
123
123
136
136
119
119
78
78
53
53
24
24
272
272
53
53
93
93
74
74
81
81
24
24
70
70
150
150
38
38
114
114
150
150
22
22
28
28
26
26
38
38
27
27
25
25
23
23
113
113
25
25
51
51
20
20
19
19
23
23
34
34
21
21
26
2
28
77
7
84
21
21
18
1
19
18
1
19
15
3
18
26
2
28
11
11
3
8
1
1
13
11
17
6
5
39
38
68
8
10
124
3
8
1
1
13
7
31
2
4
44
9
8
1
18
11
12
23
11
17
6
5
39
12
7
4
23
2
1
3
4
2
6
2
1
3
2
1
3
93
93
121
121
425
425
93
93
99
99
93
93
112
112
121
121
102
102
724
304
7
119
1,154
608
166
12
152
938
3,024
636
35
532
4,227
724
304
7
119
1,154
864
222
9
128
1,223
722
92
7
111
932
830
156
7
141
1,134
608
166
12
152
938
754
138
16
122
1,030
Five-year summary
2016
Jan 1-Mar 31
2015
Jan 1-Mar 31
2015
2014
2013
2012
6,446
16,220
1,226
155
504
339
6,511
13,829
1,428
702
675
517
26,856
14,414
5,757
2,447
2,012
1,268
25,955
13,594
5,926
3,490
3,500
2,626
25,757
13,582
5,891
2,548
1,997
968
25,993
14,229
6,040
2,190
1,668
1,158
Key ratios
EBITDA margin, %
EBIT margin, %
19.0
2.4
21.9
10.8
21.4
9.1
22.8
13.4
22.9
9.9
23.2
8.4
0.83
0.83
1.16
1.15
2.84
2.82
5.89
5.86
2.17
2.15
2.61
2.59
19,464
37,206
953
154
8,354
9,415
9,397
1,154
24,426
38,607
889
96
11,316
3,465
3,465
951
17,901
36,149
3,529
486
7,890
9,878
9,878
4,240
22,682
39,848
4,578
432
8,224
8,135
8,135
3,976
21,591
39,855
5,813
572
9,306
7,328
7,328
5,534
20,429
49,189
8,679
4,070
12,933
15,187
15,187
5,294
86
4,891
4,865
439
17,235
215
52
0.48
7.9
5.6
3.1
63
0.14
16.0
14.5
5.0
50
0.55
14.7
14.0
4.4
57
0.36
10.0
10.1
5.0
54
0.34
69.5
48.0
5.2
42
0.74
15.6
15.4
6.7
0.83
0.83
43.65
2.14
75.30
5.01
4.98
54.79
1.99
103.10
4.96
4.93
50.90
10.27
4.85
10.00
94.95
32.77
32.55
48.49
13.06
4.40
28.00
72.85
7.34
7.30
45.95
19.53
7.10
117.10
SEK million
Note
CONTINUING OPERATIONS
Net sales
Numbers of customers (by thousands)
EBITDA
EBIT
EBT
Net profit
TOTAL
Equity
Total assets
Cash flow from operating activities
Cash flow after CAPEX
Available liquidity
Net debt
Economic net debt
Net investments in intangible and tangible assets, CAPEX
Investments/divestments in shares and other
financial assets
Key ratios
Equity/assets ratio, %
Debt/equity ratio, multiple
Return on equity, %
ROCE, return on capital employed, %
Average interest rate, %
Value per share (SEK)
Net profit
Net profit after dilution
Equity
Cash flow from operating activities
Dividend, ordinary
Extraordinary dividend
Redemption
Market price at closing day
4
1, 4
10
6.69
6.65
40.13
7.91
5.351)
84.75
1) Proposed dividend
Parent company
Income statement
2016
Jan 1Mar 31
2015
Jan 1Mar 31
2015
Full year
5
19
14
15
32
17
53
121
68
32
58
104
18
69
104
106
269
231
23
81
28
76
56
175
1
13,673
13,674
1
13,666
13,667
6,492
2
6,494
5,987
3
5,990
20,168
19,657
10
10
5,549
5,247
10,796
5,549
5,346
10,895
3,734
3,734
4,204
4,204
5,555
83
5,638
4,479
79
4,558
20,168
19,657
SEK million
Net sales
Administrative expenses
Operating loss, EBIT
Exchange rate difference on financial items
Net interest expenses and other financial items
Loss after financial items, EBT
Tax on loss
NET LOSS
Balance sheet
SEK million
Note
ASSETS
NON-CURRENT ASSETS
Tangible assets
Financial assets
NON-CURRENT ASSETS
CURRENT ASSETS
Current receivables
Cash and cash equivalents
CURRENT ASSETS
ASSETS
EQUITY AND LIABILITIES
EQUITY
Restricted equity
Unrestricted equity
EQUITY
NON-CURRENT LIABILITIES
Interest-bearing liabilities
NON-CURRENT LIABILITIES
CURRENT LIABILITIES
Interest-bearing liabilities
Non-interest-bearing liabilities
CURRENT LIABILITIES
Notes
NOTE 1 ACCOUNTING PRINCIPLES AND DEFINITIONS
Acquisition costs
In Q1 2016 and Q4 2015, EBIT (administrative expenses) was negatively impacted by SEK 3 and 118 million respectively concerning
expenses related to the combination of the Tele2 and Kazakhtelecom
mobile operations in Kazakhstan. For further information please
refer to Note 11.
The interim report for the Group has been prepared in accordance
with IAS 34 and the Swedish Annual Accounts Act, and for the
parent company in accordance with the Swedish Annual Accounts
Act and RFR 2 Reporting for legal entities and other statements
issued by the Swedish Financial Reporting Board.
The amended IFRS standards (IAS 1, IAS 16, IAS 38, IAS 27 and
IFRS 11), which became effective January 1, 2016, have had no
material effect on the consolidated financial statements.
As a result of the agreement with Kazakhtelecom, Tele2 introduced in Q1 2016 a new measure; economic net debt. Please refer to
Note 4 for additional information.
In all other respects, Tele2 has presented this interim report in
accordance with the accounting principles and calculation methods
used in the 2015 Annual Report. The description of these principles
and definitions is found in the 2015 Annual Report.
Disclosures in accordance with IAS 34 Interim Financial
Reporting are presented either in the Notes or elsewhere in the
interim report.
Customers
2015
Jan 1Mar 31
2015
Full year
EBITDA
1,226
1,428
5,757
Impairment of goodwill
Sale of operations
Acquisition costs
Challenger program
Integration costs, Kazakhstan
Other one-off items
Total one-off items
326
3
34
2
365
14
14
196
12
118
247
106
443
706
712
2,862
155
702
5
2,447
2016
2015
Jan 1Mar 31 Jan 1Mar 31
SEK million
SEK million
2015
Full year
25
34
10
14
58
34
155
247
5
28
1
14
105
119
23
2016
Jan 1
Mar 31
2015
Jan 1
Mar 31
2015
Full year
2014
Full year
2013
Full year
2012
Full year
10,711
988
69
7,286
850
10,991
926
9,190
807
9,430
679
17,512
559
218
2,923
139
189
1,413
1,745
21
48
48
47
10
21
9,415
3,465
9,878
12
8,135
7,328
15,187
18
9,397
3,465
9,878
8,135
7,328
15,187
Financing
Interest-bearing liabilities
Mar 31, 2016
SEK million
Current Non-current
Current Non-current
980
500
3,849
238
5,567
52
294
5,913
500
3,784
543
4,827
125
52
368
5,372
3,048
640
3,688
936
174
4,798
10,711
955
2,548
655
4,158
416
874
171
5,619
10,991
On February 3, 2016 Tele2 completed the issuance of a SEK500 million bond in the Swedish bond market. The issue has a final maturity of 3 years with a floating rate coupon. The bond is issued under
the Tele2 EMTN program and will not be listed.
On January 13, 2016 Tele2 entered into a syndicated multi-currency revolving credit facility agreement amounting to EUR 800
million with 11 relationship banks. The facility has a tenor of five
years with two one-year extension options and it replaces the existing revolving credit facility dated May 2012. The new facility further
strengthens Tele2s financial position and secures a structure of
diversified funding sources. The new facility was unutilized as of
March 31, 2016.
SEK million
Derivative
instruments
Loans designated
and receivfor hedge
ables accounting
Financial
liabilities
at amortized cost
Total
reported
value
Fair
value
1,199
1,995
1,206
1,995
1,206
1,995
3,520
33
21
3,541
33
3,541
33
184
6,931
21
184
6,959
184
6,959
9,255
9,255
9,541
227
241
2,316
468
2,316
470
2,316
675
675
675
227
12,487
12,714
13,002
Dec 31 2015
1) The bonds in NOK are hedged for currency exposure via currency swaps
Assets and
liabilities
at fair value
through
profit/loss
(level 3)
SEK million
Assets and
liabilities
at fair value
through
profit/loss
(level 3)
Loans
and receivables
Derivative
instruments
designated
for hedge
accounting
Financial
liabilities
at amortized cost
Total
reported
value
Fair
value
1,349
2,163
1,358
2,163
1,358
2,163
3,296
32
48
3,344
32
3,344
32
107
6,947
48
107
7,004
107
7,004
8,985
8,985
9,240
541
231
308
2,746
1,080
2,746
1,049
2,746
502
502
502
541
231
12,541
13,313
13,537
NOTE 6TAXES
Assets
Liabilities
Assets
Liabilities
541
413
125
3
887
51
397
541
As of January 1
Changes in fair value
Divestment of shares
Payment of liability
Exchange rate differences*
Total
Other financial items in the income statement consist of the following items.
SEK million
2016
2015
Jan 1Mar 31 Jan 1Mar 31
413
9
1
3
418
73
2
1
1
2
73
2015
Full year
51
1
3
1
5
59
In Q1 2016, part of the put option obligation to the former non-controlling interest in Tele2 Kazakhstan was settled and SEK125 million was paid to the previous non-controlling interest. The remaining part of the fair value of the put option obligation has changed to
zero, affecting financial items in the income statement positively by
SEK413 million. The fair value was calculated based on expected
future cash flows of the jointly owned company. The reason for the
change in fair value is due to the macro environment, including
the Tenge devaluation which implies weaker consumer purchase
power and higher expenses. In addition, intense competitive pressure during Q1 has eroded pricing power for all market participants.
The fair value estimate is sensitive to changes in key assumptions
supporting the expected future cash flows for the jointly owned
company in Kazakhstan. A positive deviation from the current
assumptions would increase the earn-out liability.
In Q3 2015, the fair value of the put option of the business in
Kazakhstan decreased by SEK245 million affecting financial items
in the income statement negatively by SEK30 million and other
comprehensive income positively by SEK275 million mainly due to
the devaluation of the Kazakhstan currency during the quarter. For
further information please refer to Note 4.
In Q1 and Q3 2015, the cash flow was negatively affected by
SEK130 and 76 million respectively related to currency derivatives
designated for hedge accounting.
During the first three months 2016, the effective tax rate was mainly
affected by below stated items, indicating an underlying effective
tax rate of 21 (21) percent.
2016
Jan 1Mar 31
SEK million
2015
Full year
504
165
32.7%
2,012
744
37.0%
65 12.9%
111 22.0%
40
7.9%
77 15.3%
106 21.0%
39
144
191
58
428
1.9%
7.2%
9.5%
2.9%
21.3%
2016
Mar 31
2015
Dec 31
2015
Sep 30
2015
Jun 30
2015
Mar 31
2014
Dec 31
42
34
11
33
NOTE 8CAPEX
Bridge from CAPEX to paid CAPEX
SEK million
2016
Jan 1Mar 31
2015
Jan 1Mar 31
2015
Full year
1,154
1,154
938
13
951
4,227
13
4,240
32
15
1,107
38
4
985
205
20
4,015
139
214
146
499
137
212
154
503
446,188,367
4,894,972
446,188,367
448,364,585
448,692,629
446,188,367
4,894,972
446,032,991
449,020,673
448,904,102
Dividend
Cumulative
from start
1,241,935
1,093,535
95,000
998,535
243,400
998,535
2016
Jan 1Mar 31
Cumulative
from start
LTI 2014
Number of share rights
1,180,268
897,508
84,230
813,278
9,147
109,288
430,881
43,665
1,732
813,278
9,147
2016
Jan 1Mar 31
Cumulative
from start
LTI 2013
Number of share rights
1,204,128
841,263
32,224
444,634
364,405
19,380
139,134
478,174
41,260
444,634
14,789
364,405
19,380
The exercise of the share rights in LTI 2013 was conditional upon
the fulfilment of certain retention and performance based conditions, measured from April 1, 2013 until March 31, 2016. The
outcome of these performance conditions was in accordance with
below and the outstanding share rights will be exchanged for
shares in Tele2 or cash during Q2 2016.
Retention and performance
based conditions
Minimum
hurdle (20%)
Stretch target
(100%)
Performance
outcome
0%
24.2%
100%
8%
12.5%
10.0%
55.6%
> 0%
10%
5.4%
0%
Allotment
2016
Jan 1
Mar 31
2015
Jan 1
Mar 31
2015
Full year
2014
Full year
2013
Full year
2012
Full year
155
2,403
4,149
3,102
16,339
5,653
5
160
1,618
5
2,408
4,508
26
55
24
4,158
3,128
16,394
5,677
37,206
38,607
36,149
36,015
39,407
49,189
7,031
6,895
7,257
7,227
8,781
11,248
833
645
771
634
488
211
3,098
395
29,342
28,732
5.6
31,067
31,160
14.5
28,121
29,687
14.0
31,252
30,893
10.1
30,533
34,132
48.0
37,730
36,859
15.4
I ncluding impairment of goodwill of SEK 326 (2015: capital gain for Norway of
SEK1,708)million
2015
Full year
Acquisitions
Cash in acquired company, Altel Kazakhstan
Capital contribution to joint ventures
Total acquisition of shares and participations
40
40
4
4
Divestments
Norway
Residential cable and fiber operations, Sweden
Transaction costs, Russia
Proceeds from liquidation, Adworx Austria
Total sale of shares and participations
4,904
6
6
5
4,897
39
4,893
SEK million
ACQUISITIONS
right to appoint the CEO and all other management roles except
for the CFO. Tele2 has concluded that Tele2 has the control over
the jointly owned company as defined by IFRS and consequently
the company is consolidated by Tele2. After three years Tele2 will
under a put option be able to sell its 49percent stake at fair value to
Kazakhtelecom, which holds a symmetrical call option.
As part of the transaction Tele2 acquired Asianets 49percent
stake in Tele2 Kazakhstan. The purchase price amounted to an initial payment of SEK125 million and a deferred consideration equivalent to an 18percent economic interest in the jointly owned company during a three year period. After three years Asianet has a put
option on its 18percent earn out interest and Tele2 has a symmetrical call option. The exercise price of the put and call options will be
the fair market value of the 18percent interest in the jointly owned
company, where Asianet will receive, as deferred payment, the first
KZT 8.4 billion (SEK 199 million) of any equity value attributable to a
49 percent stake. Thereafter, the purchase agreement with Asianet
means that Tele2s effective economic interest in the jointly owned
company during the first three years will be 31percent.
The financing of the jointly owned company has been provided with existing shareholder loans from Tele2 of KZT 97 billion
(SEK2.3 billion) and a pre-existing interest free subordinated loan
of KZT 11.7 billion (SEK277 million) from Kazakhtelecom with
extended maturity to 2031. Future funding needs for the jointly
owned company will be provided via bank debt guaranteed by
Kazakhtelecom.
The current earn-out liability to the previous non-controlling
shareholder Asianet on its pre-existing 49percent stake in Tele2
Kazakhstan was on March 31, 2016 valued at fair value. For further
information please refer to Note 4.
Altel is providing telecommunication services, including mobile
services and internet services under the trademark ALTEL 4G in
Kazakhstan. The business areas consist of prepaid mobile regular
and mobile broadband. The company affected net sales of SEK71
million and EBITDA of SEK12 million in Q1 2016. Total acquisition
costs of SEK 121 million have been reported as operating costs in
the income statement in Q4 2015 and Q1 2016 by SEK 118 and 3
million respectively.
Net assets at the time of acquisition
Assets, liabilities and contingent liabilities included in the acquired
operations of Altel as of February 29, 2016 are stated below. The valuation of acquired assets and assumed liabilities is still preliminary.
SEK million
Altel, Kazakhstan
7
148
81
66
682
14
31
37
134
41
55
29
336
821
821
821
1
41
40
PRO FORMA
The table below shows how the acquired companies on March 31,
2016 would have affected Tele2s net sales and result if they had
been acquired on January 1, 2016.
January 1 March 31, 2016
Acquired
operations
SEK million
Net sales
EBITDA
Net profit
Tele2 Group
Altel, Kazakhstan
Tele2 Group,
pro forma
6,446
1,226
339
137
6
22
6,583
1,232
317
The information below shows the pro forma for Kazakhstan and
Tele2 Group respectively, if Altel had been acquired on January 1,
2015. The pro forma are to be viewed as preliminary and have to a
considerable extend been affected by fluctuations of the currency.
2016
Jan 1-Mar 31
2015
Jan 1-Mar 31
2015
Full year
2016
Q1
2015
Q4
2015
Q3
2015
Q2
2015
Q1
487
371
12
80
204
184
733
539
27
169
198
765
3,426
2,181
14
633
942
2,040
487
371
12
80
204
184
827
448
61
154
354
245
951
577
45
112
232
290
915
617
25
198
158
740
733
539
27
169
198
765
6,583
5,096
3,274
6,845
5,159
3,408
28,528
22,118
14,106
6,583
5,096
3,274
7,387
5,847
3,477
7,245
5,662
3,651
7,051
5,450
3,570
6,845
5,159
3,408
EBITDA
EBITDA, mobile
1,232
856
1,455
1,049
5,689
4,179
1,232
856
1,281
916
1,594
1,217
1,359
997
1,455
1,049
132
334
640
453
2,055
1,833
132
334
268
359
691
632
456
389
640
453
1,279
849
1,017
687
4,637
3,434
1,279
849
1,423
1,064
1,041
831
1,156
852
1,017
687
65
117
572
655
1,807
2,063
65
117
53
119
373
457
809
832
572
655
EBIT
EBIT, mobile
CAPEX
CAPEX, mobile
Net intake
Net intake, mobile