But, despite the quarterly decline in organic end-user service revenue, Tele2 chief executive Anders Nilsson said that in the first quarter, the company had started laying the foundation for future growth.
“We launched Com Hem mobile as a new growth driver and continued to see early progress on our FMC strategy with 45,000 customers now on FMC-offers,” Nilsson said.
“We are on track to reach our full year guidance with flat end-user service revenue and strong growth in underlying EBITDA excluding IFRS 16.
Tele2 lists the key quarterly results as:
- Revenue of SEK 7.2 billion (5.4), representing organic decline of -1%;
- End-user service revenue of SEK 5.3 billion, stable on an organic basis;
- Organic growth of 8% in underlying EBITDA excluding IFRS 16 for the Group;
- Organic growth of 5% in underlying EBITDA excluding IFRS 16 in Sweden, mainly driven by initial synergies from the Com Hem merger;
- Profit after financial items (EBT) was SEK 1.0 billion (0.8);
- Earnings per share after dilution was SEK 1.11 (1.24);
- Cost synergies reached an annualised run rate of SEK 300 million at the end of Q1; and
- Com Hem mobile was launched during the quarter.