Tele2 raises FY outlook again, as mobile service revenue grows 9% in Q3

Nieuws Algemeen Europa 19 OCT 2017
Tele2 raises FY outlook again, as mobile service revenue grows 9% in Q3

Tele2 has upgraded its outlook for the full year, after a strong quarter of growth in the mobile market in Q3. It now expects mobile service revenue to grow in the high single digits this year, compared to its earlier forecast for a mid single-digit increase. In Q3, mobile service revenue was up 9 percent to SEK 3.927 billion, and in the first nine months of the year, service revenue grew 15 percent. 

At the same time, the operator cut its net sales forecast to SEK 30-31 billion from SEK 31-32 billion, hurt by erosion in the fixed telephony market and the planned sale of Tele2 Austria. In Q3, net sales were up 13 percent to SEK 7.542 billion, driven by the takeover of TDC's activities in Sweden and the growth in the mobile market.

Tele2 also upgraded its EBITDA forecast again for 2017, to SEK 6.4-6.6 billion from SEK 6.2-6.5 billion. EBITDA was already SEK 5.101 billion in the first nine months, up 36 percent from a year earlier, and rose 21 percent in Q3, driven by the TDC takeover, cost-cutting under Tele's 'Challenger' programme and improving margins in mobile. 

The budget for capital expenditure this year was trimmed to SEK 2.9-3.2 billion from a previous estimate of SEK 3.6-3.9 billion after slow spending in Q3. As a result Tele2 said it now expects to cover its proposed annual dividend of SEK 4 per share from free cash flow, two years earlier than expected. Proceeds from the Tele2 Austria sale may also be considered for shareholder returns. Operating cash flow on a rolling 12-month basis was more than triple the year-earlier level in Q3, at SEK 3.556 billion.

In terms of customers, Tele2 added 185,000 in Q3 for a total 16.916 million. That includes 216,000 new mobile subscribers, mainly driven by the Netherlands, Kazakhstan and Croatia. The fixed broadband customer base decreased by 12,000, and the number of fixed telephony customers fell by 18,000.

Categories:

Algemeen

Companies:

Tele2,  Tele2 Austria

Regions:

Europa

Tags:

Voice services, Data services, Financial figures, Internet Access

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