Tele2 increases its dividend to SEK 6.75
By Dominic Chopping
STOCKHOLM — Tele2 AB on Tuesday reported better-than-expected fourth-quarter net profit and raised its dividend in support of its medium-term guidance.
The Sweden-based telecommunications company posted net profit for the quarter of 910 million crowns ($97.6 million), up from SEK 4.48 billion a year earlier. Earnings a year ago were boosted by divestments.
Analysts polled by FactSet expected SEK 823 million.
Underlying earnings before interest, tax, depreciation, amortization and cost of leased assets, or Ebitdaal – the company’s preferred measure – rose 1.0% to SEK 2.37 billion, driven by growth in revenue from end-user services and cost savings, partially offset by higher commercial expenses.
Revenue reached SEK 7.03 billion vs. SEK 7.02 billion expected.
Tele2 said that in 2022 it will complete the key IT migration elements of its business transformation program, which will generate the greatest cost savings and significantly improve operational efficiency, but it will extend the deadline. of the program until the end of the first semester. from 2023 from the end of 2022.
Tele2 declared a dividend of SEK 6.75 out of SEK 6.00.
The company backed its mid-term guidance which is the same as its guidance for 2022, expecting low-single-digit end-user services revenue growth, underlying single-digit Ebitdaal growth average and capital expenditure excluding spectrum and rental assets. from 2.8 to 3.3 billion SEK.
Write to Dominic Chopping at [email protected]