UPDATE 3-Tele2 Q2 earnings up 29 pct, above forecasts

(Adds shares, CEO comments)

By Adam Cox and Sven Nordenstam

STOCKHOLM, July 23 (Reuters) - Telecom operator Tele2 (TEL2b.ST: Quote, Profile, Research, Stock Buzz) reported a 29 percent rise in core earnings on Wednesday as mobile operations strengthened, beating market expectations and pushing its shares higher.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose to 2.07 billion Swedish crowns ($348 million) year-on-year, compared with forecasts for 1.92 billion, according to the mean average in a Reuters poll of analysts.

Tele2 shares rose 5.8 percent to 113.25 crowns by 0753 GMT, outperforming the DJ Stoxx European technology index , up 1.3 percent after plunging on Tuesday following gloomy revenue news from world No. 1 mobile group Vodafone (VOD.L: Quote, Profile, Research, Stock Buzz).

"Yesterday was a terrible day for operators, but I think overall it's a fairly good report," SEB Enskilda analyst Lena Osterberg said.

She said tight cost controls, with scaled-back marketing expenses, accounted for some of the good performance.

Tele2's strategic realignment will continue and unprofitable businesses will either improve or be disposed of, Chief Executive Lars-Johan Jarnheimer said.

Osterberg said that on the negative side, there was no news on the potential sale of Tele2's German operations, which the market had been looking for.