Tele2 has again upgraded its full-year outlook again, after a strong set of third-quarter results. Revenue rose 7 percent to SEK 6.538 billion, led by growth in Kazakhstan and Croatia and a return to mobile service growth in Sweden. Adjusted EBITDA was up a stronger 12 percent to SEK 1.984 billion, as the impact of EU roaming price cuts lessened.
On a like-for-like basis, revenue rose 4 percent, mobile end-user service revenue was up 5 percent, and adjusted EBITDA improved 9 percent. Net customer intake amounted to 171,000 in the quarter, up from 137,000 a year ago, to end September with a total of 15.64 million customers. Mobile growth improved to 192,000 in Q3, with better intake in Sweden, Lithuania and Latvia compared to last year.
Tele2 increased its full-year outlook to EBITDA of SEK 7.0-7.2 billion from a previous forecast of SEK 6.8-7.1 billion. The company maintained the forecast for mid single-digit growth in mobile service revenues, while lowering its capex budget to SEK 1.9-2.2 billion in 2018 from an earlier estimate of SEK 2.1-2.4 billion.
Net profit for the quarter fell slightly, to SEK 673 million from SEK 687 million a year ago, after a one-time tax benefit in the year-earlier period. Capex increased to SEK 420 million from SEK 377 million, as investments were higher in all segments apart from Kazakhstan and Other. Free cash flow from total operations declined slightly to SEK 1.179 billion from SEK 1.1290 billion, but Tele2 noted that operating cash flow is up 14 percent on a rolling 12-month basis.
This will be the company's last set of quarterly results on a standalone basis, as the merger with Com Hem is set to close on 05 November. Costs of the acquisition and integration of Com Hem totaled SEK 155 million already in Q3.
