Tele2 raises FY EBITDA target after growth accelerates in Q2

News General Europe 19 JUL 2017
Tele2 raises FY EBITDA target after growth accelerates in Q2
Tele2 has raised its guidance for EBITDA this year, driven by improving results in its growth markets the Netherlands and Kazakhstan and success with its challenger programme in Sweden and the Baltic markets. The company now expects annual EBITDA of SEK 6.2–6.5 billion compared to previous guidance of SEK 5.9–6.2 billion, while the capex budget was trimmed to SEK 3.6–3.9 billion from SEK 3.8–4.1 billion. 

In the second quarter, Tele2 reported net sales up 20 percent year-on-year to SEK 7.988 billion. On a like-for-like basis, adjusting mainly for the TDC acquisition, sales were up 3 percent, and mobile service revenues rose 12 percent to SEK 3.908 billion, improving from 10 percent growth in Q1. The mobile growth was driven by increased customers and ARPU mainly in the Netherlands and Kazakhstan. 

EBITDA rose to SEK 1.631 billion from SEK 1.087 billion a year ago, and the margin improved to 20 percent from 16 percent. The increase came mainly from the inclusion of TDC in Sweden as well as higher profitability levels in the Netherlands and Kazakhstan. Fixed broadband in the Netherlands was negatively affected by a provision of SEK 64 million for a court case against KPN. 

The net result moved to a profit of SEK 278 million compared to a loss of SEK 60 million a year ago, and free cash flow jumped to SEK 820 million from SEK 139 million. Capital expenditure fell slightly, to SEK 770 million from 820 million, due mainly to less work on the Dutch network roll-out. 

Categories:

General

Companies:

TDC,  Tele2

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Europe

Tags:

Voice services, Data services, Financial figures, Internet Access

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