Friday, 26 April 2019 00:29

Tele2 sees quarterly revenue decline

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Swedish mobile operator group Tele2 suffered a decline in revenue of 1% to 7.2 billion krona (A$1.2 billion) in the first quarter of 2019.

But, despite the quarterly decline in organic end-user service revenue, Tele2 chief executive Anders Nilsson said that in the first quarter, the company had started laying the foundation for future growth.

“We launched Com Hem mobile as a new growth driver and continued to see early progress on our FMC strategy with 45,000 customers now on FMC-offers,” Nilsson said.

“We are on track to reach our full year guidance with flat end-user service revenue and strong growth in underlying EBITDA excluding IFRS 16.

“This is largely driven by the integration and cost restructuring process which is well under way.”

Tele2 lists the key quarterly results as:

  • Revenue of SEK 7.2 billion (5.4), representing organic decline of -1%;
  • End-user service revenue of SEK 5.3 billion, stable on an organic basis;
  • Organic growth of 8% in underlying EBITDA excluding IFRS 16 for the Group;
  • Organic growth of 5% in underlying EBITDA excluding IFRS 16 in Sweden, mainly driven by initial synergies from the Com Hem merger;
  • Profit after financial items (EBT) was SEK 1.0 billion (0.8);
  • Earnings per share after dilution was SEK 1.11 (1.24);
  • Cost synergies reached an annualised run rate of SEK 300 million at the end of Q1; and
  • Com Hem mobile was launched during the quarter.

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Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

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