Tele2 Group outlined a transformation programme aimed at cutting costs over the next three years, as its Q4 2019 top line was boosted following a tie-up with Com Hem.
In a statement, CEO Anders Nilsson said the quarter marked the end to a transformative year, as it completed its integration with cable operator Com Hem, after closing the $3.2 billion acquisition in November 2018.
Nilsson said the integration was completed two years ahead of schedule, delivering roughly SEK200 million ($20.7 million) of additional synergies in the quarter.
As a result, Tele2 said it will initiate the next phase of its transformation, to build and grow momentum by reducing costs by at least SEK1 billion in the next three years.
The Com Hem merger was also a major driver for revenue growth, with the figure up 10 per cent year-on-year to SEK7.3 billion.
Tele2 swung back to the black, reporting a net profit of SEK943 million from an SEK329 million loss in Q4 2018, when it was impacted by deferred tax payments.
Breaking out individual markets, the company’s domestic revenue fell 1 per cent to SEK5.9 billion, mainly due to lower consumer equipment revenue. The decline was offset by the Baltics region, with revenue growth in Lithuania, Latvia and Estonia.Subscribe to our daily newsletter Back