Tele2 said it will focus on its businesses in the Netherlands and Kazakhstan this year as it looks to stem falling revenues across the group.

Sales fell three percent to €783 million in the first three months of 2014 due to lower mobile interconnect levels and falling sales across its fixed line portfolio.

However, the operator hailed a three percent rise in mobile services revenues during the quarter driven by increasing demand for 4G enabled devices and “pro-active marketing” of new TV and streaming services.

Net profit increased 35 percent to €52 million, while capex more than halved.

Apart from Kazakhstan, which saw a 14 percent uptick in revenues, all the markets in which Tele2 operators registered a decline in sales.

Its main Swedish business saw revenues fall by two percent while sales in the Netherlands fell by five percent.

[Read more: Tele2 appoints new CEO in Netherlands]

Growth in Kazakhstan ­– the company reported a 200 percent increase in data usage – was the unit’s first positive quarter since commercial launch.

Tele2 President and CEO Mats Granryd (pictured) commented: "Our focus for 2014 is clear. The Netherlands and Kazakhstan are building a mobile business for the future, contributing strongly to overall growth. Sweden stands as the role model when it comes to creating a profitable and data centric business model.”

In Norway, which the operator revealed it was considering the sale of last month, revenues were down two percent.

[Read more: Tele2 Norway on the block as Tele2 Sweden signs up NSN for customer experience]

Granryd said the strategic review would continue with the aim of finding a solution that will “maximise value for our shareholders”.

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