STOCKS NEWS EUROPE-Tele2 tumbles 10 pct on cut guidance, weak Q3

Shares in Swedish telecom operator Tele2 (Other OTC: TLTZF - news) fall almost 10 percent after the company cuts its sales and earnings guidance for 2015 and posts lower than expected third-quarter earnings.

In Sweden, its biggest market accounting for around 40 percent of sales, growth in underlying mobile revenue slowed to 1 percent in the quarter from 4 percent in the second quarter while margins in its Swedish mobile unit fell to 30.3 percent from 32.8 percent in the year-ago quarter.

"The Tele2 report was weak on all accounts," Nordea, which has a "sell" rating on the stock, says in a note to clients. "Sweden is the main disappointment with a seasonally weak EBITDA margin of 30 percent."

Tele2 shares are down 9.7 percent at 77.80 crowns at 0723 GMT, on track for their biggest daily fall since early February, when the company issued a weak report for the fourth quarter of 2012 and warned of slower growth in Sweden and Russia, sending the shares down 10 percent.

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Reuters messaging rm://sven.nordenstam.reuters.com@reuters.net

Reuters messaging rm://olof.swahnberg.reuters.com@reuters.net