Strong Financial Performance
Tele2's net profit for the quarter reached 887 million kronor ($86.5 million), surpassing last year's figure of SEK847 million. Analysts polled by FactSet had projected SEK849 million.
The company's preferred metric, underlying earnings before interest, taxes, depreciation, amortization and the cost of leased assets (Ebitdaal), rose by 2% to SEK2.51 billion.
Revenue Growth
Tele2 reported a 4.9% increase in revenue, amounting to SEK7.15 billion. This exceeded the FactSet estimate of SEK7.1 billion.
Future Outlook
Despite inflationary pressures, Tele2 remains optimistic about future prospects. According to Chief Executive Kjell Johnsen, the company's leverage range puts them in a favorable position to make investments that will strengthen Tele2 in the long run while continuing to pay dividends.
Revised Targets
The telecom company has revised its targets for end-user service revenue growth. It now aims for low-to-mid single-digit growth in 2023 and the midterm, as opposed to the previous target of low-single-digit growth.
Additionally, Tele2 plans to reduce capital expenditure to sales below 14% in 2023, compared to the previous range of SEK2.8 billion-SEK3.3 billion. The midterm target for capital expenditure to sales is set at 10% to 14%, down from SEK2.8 billion-SEK3.3 billion previously.
Unchanged Growth Targets
Despite the revisions, Tele2's underlying Ebitdaal growth targets remain unchanged.
Technology Stocks at a Crossroads
Our Latest News
Fisker Reports Third-Quarter Numbers
Electric vehicle start-up Fisker reports weaker-than-expected Q3 results, leading to decline in stock value. No production guidance provided. Expenses expected...
Elon Musk's xAI Introduces Grok Chatbot to Compete with ChatGPT
Elon Musk's xAI has launched Grok chatbot to rival Microsoft's ChatGPT, though it may not pose significant competition. Grok promises wit and uniqueness.
The Changing Landscape of the Bond Market
The bond market is experiencing significant transformations, with the emergence of a new normal and elevated interest rates. The housing market is impacted, and...