EU-mandated end to roaming charges didn’t spoil Tele2 turnaround

‘The third quarter was a test of our ability to operate in a dynamic environment, as we saw the full effect of Europe’s new roaming regime, the new Dutch consumer credit regulation and our new service offerings which we launched across our markets in the first half of 2017.’ , CEO comment

Kirkby said Tele2 strengthened its credentials as a challenger brand in Sweden (its domestic market) and the Baltics following year-on-year increases in mobile service revenue in those markets during Q3 2017.

The company’s operations in the Netherlands, Kazakhstan and Croatia “all delivered high growth levels” and “further acceleration towards cash flow breakeven”.

“I am extremely proud that as a company we are increasingly able to combine a relentless focus on driving strong business momentum”, Kirkby stated, adding the company believes the best way to create value for its shareholders is by enabling consumers to “live a more connected life”.

Financial highlights:

  • Tele2 AB’s net sales for the first quarter amounted to SEK 7,542 (6,674) million and EBITDA amounted to SEK 1,848 (1,523) million
  • Mobile end-user service revenue growth of 9 percent, or 7 percent on a like-for-likebasis
  • Free cash flow of SEK 2.3 billion YTD, providing the possibility of reaching full dividend cover for financial year 2017
  • Strong uptake of new mobile commercial propositions driving double digit end-user service revenue and EBITDA growth in the Baltics, Netherlands and Kazakhstan

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