Tele2 updated its full-year guidance for a second consecutive quarter after a strong Q3 performance, as the company prepares to complete its $3.2 billion deal for cable operator Com Hem next month.
CEO Allison Kirkby, who will leave the company to takeover at Danish group TDC in December, said in a statement the final quarter before closing the merger with Com Hem was “once again a quarter of solid business trends”.
Tele2 secured approval for the Com Hem deal, first announced in January, earlier this month, and it will be completed in early November. The merger will take the company’s “customer-focussed strategy at an even higher level”, said the outgoing chief.
On to the financials, Kirkby highlighted growth in mobile end user service revenue, while investment markets “continue to outperform” and Sweden “remained resilient”.
She also said results were improved after the company put the effects of EU roaming price cuts behind it.
For Q3, the company saw a 7 per cent increase in revenue, hitting SEK6.5 billion ($726 million), up from SEK6.1 billion in Q3 last year, with strong momentum in Croatia, Kazakhstan and the Baltics highlighted.
In home market Sweden, where almost 60 per cent of total revenue comes from, the company returned to mobile end user service revenue growth, at 1 per cent.
Net profit dipped slightly, to SEK673 million from SEK687 billion last year when the figure was boosted by lower tax.
Net customer intake for the period amounted to 171,000, up from 137,000 for the same period in 2017, giving it a total of 15.64 million customers.
Tele2 added it expects to report its Q4 results with contribution from Com Hem, post completing the acquisition.
For the full year, the company raised its full year EBITDA outlook of SEK7 billion – SEK7.2 billion from a previous forecast of SEK6.8 billion to SEK7.1 billion.
Costs of the acquisition and integration of COM Hem totaled SEK155 million Q3.Subscribe to our daily newsletter Back