Tele2’s pro forma consolidated FY19 sales down 0.6%; EBITDA up 20.0%

4 Feb 2020

Sweden’s Tele2 reported full-year 2019 consolidated revenue from continuing operations of SEK27.659 billion (USD2.780 billion), 27.0% higher than SEK21.775 billion reported for FY18, driven by November 2018’s takeover of Swedish multi-play broadband operator Com Hem. Tele2’s continuing operations include Sweden, Lithuania, Latvia, Estonia and Germany, while its Croatian unit – held-for-sale since May 2019 – is reported as discontinued operations alongside Kazakhstan (sold in June 2019) and the Netherlands (merged with T-Mobile in January 2019). Annual underlying EBITDA from continuing operations reached SEK10.525 billion in 2019, 64.8% higher than 2018’s reported figure of SEK6.386 billion, driven by synergies from the Com Hem merger and continued strong performance in the Baltics.

Tele2 also reported, however, that including pro forma results for Com Hem (pre-acquisition), its consolidated continuing operations revenue decreased by 0.6% in FY19 (from SEK27.832 billion to SEK27.659 billion). Pro forma underlying annual EBITDA rose by 20.0% (from SEK8.768 billion to SEK10.525 billion). While confirming that the full-year results were in line with guidance, the group disclosed reaching SEK800 million cost savings out of a total expected SEK900 million savings from the Com Hem integration, and announced the launch of a new three-year business transformation programme expected to generate at least SEK1 billion of additional savings.

Domestically, end-2019 subscriber totals for Tele2 Sweden (including Com Hem) stood at: 3.882 million mobile (end-2018: 3.836 million); 873,000 fixed broadband (827,000); 282,000 ‘fixed telephony & DSL’ (325,000) and 1.002 million digital TV (1.057 million). Tele2 also highlighted that its fixed mobile convergence (FMC) strategy in Sweden was ‘progressing well’, with 219,000 customers on FMC offers by year-end.

Sweden, Com Hem, Tele2, Tele2 Sweden (incl. Com Hem)