Q2 sales down 2% at Tele2 on an organic basis

17 Jul 2019

Sweden-based Tele2 Group has reported revenue of SEK6.8 billion (USD725 million) for the second quarter of 2019, a fall of 2% year-on-year in organic terms. End-user services revenues declined by 1% on an organic basis to SEK5.1 billion.

Organic underlying EBITDA rose 3% in Q2 2019 to SEK2.2 billion across the group, while its Swedish operations recorded a similar rise to SEK1.8 billion, driven by synergies from the merger with Com Hem in November 2018. The group noted that its operating profit fell from SEK835 million in Q2 2018 to SEK431 million as the result of a goodwill impairment of SEK542 million in Estonia, as well as the amortisation of surplus values from its 25% stake in T-Mobile Netherlands. Capex rose to SEK720 million in 2Q19 (up from SEK675 million) following the Com Hem merger.

Excluding its operation in Croatia, which is classified as discontinued, Tele2 Group had 7.42 million mobile subscribers in Sweden, Latvia, Lithuania, Estonia and Germany at 30 June 2019. The Swedish unit – including Com Hem – served 852,000 fixed broadband customers and 1.04 million pay-TV users at the same date.

Sweden, Tele2