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.
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.
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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