In This Article:
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End User Service Revenue Growth: 3% organically, marking the 14th consecutive quarter of growth.
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Underlying EBITDAaL Growth: 2% organically.
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Financial Leverage: 2.3 times, below the target range.
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Equity Free Cash Flow: SEK1.1 billion for the quarter.
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Sweden B2C End User Service Revenue Growth: 1%, led by fixed broadband and mobile postpaid.
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Sweden B2B End User Service Revenue Growth: 2%.
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Baltics End User Service Revenue Growth: 7% organically.
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Mobile End User Service Revenue Growth: 2%, driven by 3% in postpaid.
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Fixed Broadband Revenue Growth: 7%.
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Digital TV Revenue Decline: 4% due to legacy business decline.
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Cash Conversion in Baltics: 73% over the last 12 months.
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Group Revenue Growth: 3% organically.
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Group Underlying EBITDA Growth: 2% organically.
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Income Taxes Increase: SEK50 million year on year.
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Debt Mix: 59% fixed rate, 41% floating rate.
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Equity Free Cash Flow (Last 12 Months): SEK4.1 billion, SEK5.9 per share.
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Economic Net Debt: SEK24.6 billion.
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Leverage Adjusted for Dividend: 2.55 times.
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CapEx to Sales (Sweden): 15% over the last 12 months.
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CapEx to Sales (Baltics): 10% due to ongoing rollout.
Release Date: October 22, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Tele2 AB (TLTZF) reported a solid quarter with a 3% growth in end-user service revenue, marking the 14th consecutive quarter of growth.
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The company announced the first Disney+ bundle offering in Sweden, enhancing its entertainment offerings.
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Tele2 AB (TLTZF) was recognized as one of Sweden's most gender-equal companies, highlighting its commitment to diversity and inclusion.
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The Baltics region showed strong performance with a 7% growth in end-user service revenue, driven by pricing strategies.
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The company achieved SEK1.1 billion in equity free cash flow, maintaining a low financial leverage of 2.3 times, which is below the target range.
Negative Points
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The Swedish B2C segment faced challenges with only a 1% growth in end-user service revenue, impacted by legacy headwinds and tougher comparisons.
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There was a decline in digital TV end-user service revenue by 4%, driven by an increasing decline rate in the legacy DTV business.
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The cost savings program showed a slowdown in quarterly development, with only SEK25 million added to the annualized run rate.
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The company faced a SEK17 million headwind from energy costs, mainly due to the absence of electricity support received last year.
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Tele2 AB (TLTZF) anticipates potential churn impacts from the migration of Boxer TV customers to modern technology.