Tele2 Group CEO Kjell Johnsen outlined plans to up investment in next-generation networks and spectrum as it outlined gains in Q2 on success in the Baltics and B2B operations in home market Sweden.

Johnsen stated Tele2 is upholding growth momentum at the halfway point of 2023, pointing to long-term financing with attractive margins which replace agreements put in place during a merger with cable company Com Hem in 2018.

“Coupled with our efficient revenue-to-cash conversion profile and prudent balance sheet management over time, this means Tele2 is well prepared to invest in 5G networks and radio spectrum, while continuing to pay healthy dividends to our shareholders.”

Johnsen added Tele2 is prioritising sustainable growth and, while it is likely H2 will present challenges to many “retail exposed companies and industries”, its previous planning means it sees high interest rates and general uncertainties affecting society as an opportunity.

Revenue in Q2 hit SEK7.2 billion ($705.7 million), up 3 per cent year-on-year

End user service revenue was up 4 per cent to SEK5.3 billion, largely due to volume strength and higher average spend per user in the Baltics, a 5 per cent increase in B2B in Sweden and international roaming revenue.

Mobile revenue was flat at SEK1.5 billion, with growth in post-paid offset by an 8 per cent decrease in prepaid.

Net profit increased from SEK847 million to SEK888 million.