Tele2, a leading telecommunications provider, demonstrated robust performance in the first quarter of 2024, marked by organic growth and strategic maneuvers. Here’s a breakdown of the key highlights:
- Revenue Growth: End-user service revenue reached SEK 5.3 billion, showing a 4% organic increase compared to Q1 2023. Total revenue also saw a rise, reaching SEK 7.2 billion, a 2% increase from the same period last year.
- Profitability: Underlying EBITDAaL climbed to SEK 2.6 billion, marking a 2% organic increase over Q1 2023. This growth was driven by the outperformance of end-user service revenue against cost inflation. Q1 2024 profit after financial items (EBT) stood at SEK 1.0 billion.
- Financial Performance: Net profit from total operations reached SEK 0.8 billion, with earnings per share amounting to SEK 1.20. Equity free cash flow for the quarter totaled SEK 1.3 billion, showcasing Tele2’s solid financial position.
- Strategic Transactions: Kinnevik announced the sale of its shareholding in Tele2 to Freya Investissement, jointly controlled by iliad and its Chairman and founder Xaviel Niel through NJJ Holding. This transaction positions Freya as the new largest shareholder in Tele2, signaling potential shifts in the company’s ownership landscape.
- Recognition for Sustainability Efforts: Tele2’s commitment to sustainability was underscored by its inclusion in CDP’s top ‘A List’ for climate change efforts and Equileap’s global top 100 list for corporate gender equality efforts. These recognitions highlight Tele2’s dedication to environmental and social responsibility.
Kjell Johnsen, President and Group CEO of Tele2, expressed satisfaction with the company’s performance, noting continued growth in the Swedish market and strong momentum in the Baltics. He emphasized Tele2’s unique capital efficiency model, which enables substantial upgrades in technical capabilities while maintaining strong cash flows and low leverage.
Looking ahead, Johnsen expressed cautious optimism, anticipating gradual improvements in consumer sentiment driven by reduced inflation and lower interest rates across Tele2’s markets. These favorable economic conditions are expected to support the company’s growth trajectory in the coming quarters.
