Tele2 Digital TV subscribers down 9k in 1Q 2023

Friday, April 21st, 2023 
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Tele2 interim report first quarter 2023

  • End-user service revenue of SEK 5.1 billion increased by 4% organically compared to Q1 2022 due to strong performance in the Baltics and Sweden B2B. Total revenue of SEK 7.0 billion increased by 3% organically compared to Q1 2022.
  • Underlying EBITDAaL of SEK 2.5 billion remained unchanged organically compared to Q1 2022 as end-user service revenue growth and cost savings related to the Business Transformation Program were offset by inflation pressures.
  • Profit after financial items (EBT) of SEK 1.1 (2.7) billion in Q1 2023. The decline is mainly related to the capital gain of SEK 1.6 billion from the T-Mobile Netherlands divestment in Q1 2022.
  • Net profit from total operations of SEK 0.8 (2.5) billion and earnings per share of SEK 1.23 (3.59).
  • Equity free cash flow of SEK 1.1 (0.9) billion. Over the last twelve months, SEK 3.7 billion was generated, equivalent to approximately SEK 5.30 per share.
  • Full-year 2023 and mid-term financial guidance is reiterated.

STOCKHOLM — Tele2 AB (“Tele2”) (Nasdaq Stockholm: TEL2 A and TEL2 B) today announces its consolidated results for the first quarter 2023.

Comment from Kjell Johnsen, President and Group CEO of Tele2 – “This year is an important one for Tele2. We aim to build Sweden’s best 5G network, while also executing on an IT transformation that will improve every step of the digital customer journey and experience.

While building for the future, it is of essence to keep our growth momentum here and now. Hence, I’m pleased to see Tele2’s overall growth in Q1, mainly driven by Sweden B2B and the Baltics. On the consumer side we have taken actions in Q1 to address the inflationary pressure and consequences of higher interest rates, and it will contribute to the revenues as the year progresses.”

Sweden Consumer

Digital TV end-user service revenue stabilized and held flat as the rollout of new Viaplay-infused packages and associated price increases managed to offset the decline in the legacy DTT business.

RGUs (thousands) – Digital TV

                       Net intake                              RGU base
                 ----------------  ------------------------------------
                 Jan-Mar  Jan-Mar  Jan-Mar  Jan-Mar  Organic  Full year
                    2023     2022     2023     2022        %       2022
                 -------  -------  -------  -------  -------  ---------
Total                 -9       -8      879      918      -4%        888
  Cable & Fiber       -1       -2      631      637      -1%        633
  DTT                 -8       -7      248      282     -12%        256

Links: Tele2