Tele2 Q1 2022 results show progress despite external environment

Tele2 AB announces its consolidated results for the first quarter 2022.

Q1 has brought significant progress to Tele2’s business, despite a very complicated external environment. In Sweden, B2B is showing impressive dynamics with 3% top-line growth year-over-year and in B2C we announced our new partnership with NENT/Viaplay giving us a strong TV proposition as a key part of our convergence story. Overall top line growth in the Baltics reached 13% in Q1 and we also completed the divestment of T-Mobile Netherlands, marking the final milestone in our international consolidation. The tragic events in Ukraine have led to major uncertainty for many and particularly for our employees and customers in the Baltics and, together with other industry players, we are temporarily offering free calls and text messages to and from Ukraine. We remain positive about Tele2’s future and delivering on our aim of being the leading telco in the Nordic and Baltic region, says Kjell Johnsen, President and CEO of Tele2.

Highlights

• End-user service revenue of SEK 4.9 billion increased by 3% compared to Q1 2021 on an organic basis due to strong performance in the Baltics, Sweden B2B and slight tailwind from roaming.
• Total revenue of SEK 6.7 billion increased by 2% compared to Q1 2021 on an organic basis.
• Underlying EBITDAaL of SEK 2.5 billion increased by 6% organically compared to Q1 2021 driven by end-user service revenue growth and cost savings related to the Business Transformation Program.
• Profit after financial items (EBT) of SEK 2.6 billion increased by SEK 1.6 billion compared to Q1 2021, mainly related to the capital gain of SEK 1.6 billion from the T-Mobile Netherlands divestment. Net profit from total operations of SEK 2.5 billion (SEK 3.6 per share) increased by SEK 1.6 billion compared to Q1 2021.
• Equity free cash flow from continuing operations of SEK 0.9 (0.8) billion. Over the last twelve months, SEK 5.9 billion was generated, equivalent to SEK 8.5 per share.
• The Board of Directors proposes an extraordinary dividend of SEK 13.00 per share related to the completed T-Mobile Netherlands divestment.
• Tele2 Sweden entered strategic distribution partnership with Viaplay.

CT Bureau