Tele2 said it expects activity in its markets to pick up in the fourth quarter but has left its FY guidance unchanged, as it reported a 2 percent year-on-year increase in end-user service revenue (EUSR) for the third quarter of 2021. This follows 12 percent EUSR growth in the Baltic region, a 1 percent upturn in Sweden and a slight "tailwind" from roaming. The operator said this is the second consecutive quarter of growth, with good results in every segment.
The operator said end-user service revenue from continuing operations in Q3 improved 2 percent to SEK 4.90 billion from SEK 4.79 billion a year earlier. Revenue rose to SEK 6.64 billion from SEK 6.54 million. Operating profit fell to SEK 1.37 billion from SEK 1.54 billion a year earlier and the profit after financial items dropped to SEK 1.26 billion from SEK 1.41 billion.
Underlying EBITDAaL from continuing operations increased by 5 percent year on year to SEK 2.58 billion from SEK 2.47 billion. Capital expenditure excluding spectrum and leases rose to SEK 717 million from SEK 653 million in Q3 2020. Equity free cashflow grew to SEK 1.90 billion from SEK 1.71 billion.
Net profit from total operations slipped to SEK 1.12 billion from SEK 1.22 billion last time and earnings per share after dilution fell to SEK 1.62 from EPS of SEK 1.76 in Q3 2020. Equity free cashflow from total operations rose to SEK 1.93 billion from SEK 1.74 billion.
For the first nine months of the year, economic net debt to underlying EBITDAaL increased to 2.5 times from 2.2 times.
Tele2 said its Swedish B2B division turned to growth for the first time in several years and commercial momentum is starting to pick up in Swedish B2C, too. Business EUSR in Sweden went up by 1 percent on an organic basis to SEK 950 million from SEK 940 million in Q3 2020 and Swedish consumer EUSR was also 1 percent higher at SEK 3.10 billion, up from SEK 3.08 billion. Baltic revenue climbed 12 percent to SEK 849 million from SEK 770 million.
Swedish mobile consumer revenue in the third quarter grew 2 percent to SEK 1.49 billion from SEK 1.46 billion a year earlier and Swedish consumer fixed revenue was flat at SEK 1.44 billion. Swedish B2C fixed broadband revenue went up by 4 percent to SEK 696 million. Swedish consumer digital TV revenue fell 2 percent to SEK 687 million from SEK 704 million. Landlord and Other revenue fell 3 percent to SEK 168 million.
In its Swedish consumer segment, Tele2 said its total addressable fixed footprint expanded by 3 percent to 3.52 million on 30 September 2021 from 3.41 million a year earlier. Total Swedish consumer RGUs dipped by 2 percent to 5.03 million from 5.12 million.
Swedish consumer mobile ASPU for the third quarter rose to SEK 168 from SEK 165 a year earlier but mobile RGUs fell to 2.96 million from 2.98 million.
Fixed Swedish consumer RGUs fell 4 percent to 2.06 million from 2.14 million, with ASPU up 3 percent at SEK 232 year on year. Fixed broadband RGUs improved 2 percent to 926,000 and ASPU edged up by 1 percent to SEK 252. Digital TV RGUs in the Swedish consumer segment fell by 6 percent year on year to 936,000 and digital TV ASPU went up by 3 percent to SEK 244.
In the Swedish Business segment, Tele2 gained 17,000 mobile RGUs in the third quarter of 2021, bringing its total to 991,000, up from 936,000 a year earlier. Mobile B2C ASPU fell 4 percent to SEK 134 year on year and mobile revenue rose 3 percent to SEK 467 million.
Swedish wholesale revenue rose 17 percent year on year to SEK 279 million
