UPDATE 1-Tele2 Q2 tops forecast, raises Russia outlook

UPDATE 1-Tele2 Q2 tops forecast, raises Russia outlook

* EBITDA 2.7 bln Swedish crowns, vs forecast 2.6 bln

* Raises Russia EBITDA margin forecast

* Sees Russia subscribers at top end of range

(Adds quotes, background)

STOCKHOLM, July 20 (Reuters) - Nordic telecoms company Tele2 (TEL2b.ST: Quote, Profile, Research) posted second-quarter core profit slightly above expectations and raised forecasts for its key Russia growth engine for the second time in six months.

Earnings before interest, tax, depreciation and amortisation (EBITDA) for the period rose 1 percent to 2.71 billion crowns ($416 million), compared with a forecast for 2.64 billion in a Reuters poll.

Tele2 said on Wednesday Russia had added 720,000 new subscribers during the quarter, while core profit there grew to a record 1.1 billion crowns from 944 million a year earlier.

The company said it now expected its Russia operations total EBITDA margin to be in 38-40 percent range this year, up from an earlier 36-39 percent.

It also said it would hit 21 million subscribers by year-end, the top of a previously given range.

"We delivered positive EBITDA for the first time in our new (Russian) regions, as promised to the market," chief executive Mats Granryd said.

Swedish telecoms firms have benefited from rapid recovery at home which has driven increased smartphone and mobile internet use, boosting revenues and profits. At the same time, emerging market assets have continued to develop strongly.

Much of the improvement has been offset by tough conditions in other markets where they operate and from a stronger Swedish crown, which hurts reported profits.

Tele2's second-quarter net sales, at 10.0 billion crowns, were down 5 percent, but up 6 percent excluding currency effects and one-off items.

In Sweden, still Tele2's biggest market, the company earned 892 million crowns versus 829 million a year ago. (Editing by Dan Lalor) ($1 = 6.486 Swedish crowns)
09:17 20/07/2011ALL NEWS

Rating of Russia’s Alfa-Bank raised to BB+.

http://www.itar-tass.com/en/c154/188926.html

20/7 Tass 14

LONDON, July 20 (Itar-Tass) — Fitch Ratings has raised long-term credit rating of Russia’s Alfa-Bank to BB +. The corresponding report was released on global markets on Tuesday.

The agency set the credit outlook of Alfa-Bank to “stable.”

The agency analysts said in a commentary that that the current raising of the rating is the result of significant qualitative improvement of the bank’s assets, as well as impressive work results.

Alfa-Banking Group has maintained its position as the top Russian private bank by total assets, total equity and customer accounts, according to the bank’s website.

Founded in 1990, Alfa-Banking Group offers a wide range of products and operates in all sectors of the financial market, including corporate and retail lending, deposits, payment and account services, foreign exchange operations, cash handling services, custody services, investment banking and other ancillary services to corporate and retail customers.

The corporate and retail client base has grown considerably during the last several years — by the end of 2010, Alfa-Banking Group served over 40 000 active corporate customers and 5.3 million retail clients, while the branch network extended to 364 offices across Russia and abroad, including a subsidiary bank in the Netherlands and financial subsidiaries in the United States, the United Kingdom and Cyprus.

Net profit of the Alfa-Banking Group for the period amounted to USD 553 million (2009 — USD 77 million) and is the highest recorded profit in the 20-year history of Alfa Banking Group, representing a 19.1 percent return on average equity. Total equity increased by 14.1 percent to USD 3.1 billion net of a USD 150 million dividend. Alfa Banking Group maintained a high capital adequacy ratio of 18.2 percent as of December 31, 2010 (December 31, 2009 — 20.2 percent).

In the reporting period Alfa Banking Group recorded an increase of its total assets of 31.6 percent from USD 21.6 billion at the end of 2009 to USD 28.5 billion at December 31, 2010, reflecting strong macroeconomic recovery and the ability of Alfa-Bank to attract new customers in both the corporate and retail segments.

The key factors driving profitability were a 21.6 percent increase of net margin (from USD 1.1 billion in 2009 to USD 1.3 billion in 2010), a 24.3 percent increase of net fee and commission income (from USD 255 million in 2009 to USD 317 million in 2010), increases in net income from investments and foreign currency transactions and a reduction of provisions for loan impairment. In addition the retail business unit recorded positive profit before tax for the first time, in the amount of USD 208 million.

Russia 2011 car sales seen rising up to 40 pct – PWC

MOSCOW, July 20 (Reuters) - Russian car sales are expected to rise by 20 to 40 percent in 2011 to 2.1 million-2.5 million units, PricewaterhouseCoopers said on Wednesday.

PWC revised its full-year forecast from 35 percent after the sector's strong results in the first five months of the year.

The Russian car market has been recovering rapidly from the economic crisis of 2008 and is on track to become Europe's biggest car market. (Reporting by Gleb Stolyarov, Writing by Andrey Ostroukh; Editing by Maria Kiselyova)

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July 20, 2011 3:34 am