A year earlier, the company had fourth quarter pre-tax profits of 515 million kronor.

Turnover increased to 1.04 billion kronor, compared with 973 million kronor the previous year.

According to Reuters, analysts had expected a profit of 322 million kronor and turnover of 1.05 billion kronor.

The board of directors suggested a dividend 3.15 kronor per share and a special dividend of 4.70 kronor.

Despite the loses, Tele 2 managing director Lars-Johan Jarnheimer is satisfied with the company’s development, especially in eastern Europe and Sweden.

“When we look ahead to 2008 we see more of the same positive developments. The restructuring process will continue. There is still a need to review the organization’s size so that we can concentrate our resources on the areas that prove to be the most profitable,” Jarnheimer wrote in the report.