Tele2 Group president and CEO Kjell Johnsen (pictured) outlined confidence in the company’s ability to meet a cost saving goal of SEK1 billion ($95.6 million) by mid-2023, as its Q4 2022 top line was boosted by the release of a tax provision related to its former operations in Kazakhstan.

In an earnings statement, Johnsen noted 2022, and in particular the Russia war on Ukraine, had placed novel demands on the company and its procedures, but noted it had adapted and continued to build momentum despite the challenging conditions.

The operator, which has ambitions to become “the leading telco in the Nordic and Baltic region”, posted revenue of SEK7.5 billion, up 4 per cent on Q4 2021, while net profit increased to SEK1.3 billion from SEK953 million.

With revenue gains put down to strength across the Baltics and B2B growth in Sweden, net profit was up due to the realisation of a tax provision of SEK363 million related to its former operations in Kazakhstan. 

Following a three-year row, the operator finally won a case in November 2022 regarding its attempts to slash a tax bill on losses related to its now divested unit in the country.

Business transformation
Johnsen stated the company was on track to meet its cost saving goal in mid-2023, as part of a wider business transformation programme lasting a total of three years, which started in April 2022.

In 2023, the company added it expects to continue to roll out 5G at a “good pace”, pointing at a focus on an upcoming spectrum auction in Sweden.

Tele2 is expecting low single-digit growth of end user service revenue, and capex excluding spectrum and leasing assets of SEK2.8 billion to SEK3.3 billion.