Tele2 swings to IFRS net profit of 1.6 bln rbl in Jul–Sep from loss

MOSCOW, Oct 31 (PRIME) -- Russian mobile operator T2 RTK Holding, working under the Tele2 brand, posted a net profit of 1.6 billion rubles in July–September against a net loss of 1.4 billion rubles a year earlier, as calculated under International Financial Reporting Standards (IFRS), the company said on Wednesday in a statement.

“In the reported period Tele2 again showed an increase in the net profit, while raising investment in technological evolution of the network. Tele2 succeeded in reaching such results thanks to structural improvement of the subscriber base, expansion of the share of active Internet users and better client loyalty,” General Director Sergei Emdin said.

Revenue increased 15.4% to 37.3 billion rubles. Earnings before interest, taxes, depreciation and amortization (EBITDA) jumped 47.4% to 12.3 billion rubles. The EBITDA margin gained 7.1 percentage points to 32.9%.

Capital expenditures increased 78.3% to 4.4 billion rubles.

T2 RTK Holding did not disclose its subscriber base, but said the churn rate decreased 0.4 percentage points to 9.1%. Average revenue per user (ARPU) rose 10.7%.

(65.7742 rubles – U.S. $1)

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