Tele2 Group president and CEO Kjell Johnsen (pictured) highlighted 2021 as a good year for the Sweden-headquartered operator despite prevailing uncertainties in the opening months.
Discussing its earnings, Johnsen indicated Tele2 is delaying completion of a three-year business transformation programme from the close of 2022 to end-June 2023. The aim of the project is to cut operational expenditure in Sweden by SEK1 billion ($108 million).
Johnsen stated Tele2 is confident of achieving the amended deadline and highlighted it delivered savings of SEK500 million during 2021.
“As business progressed over the year, we were able to lift our guidance and we are now pleased to announce that we have delivered on these increased targets and that we have created a business that enables us to reiterate our mid-term targets,” the executive noted.
Tele2’s confidence is reflected by a 12.5 per cent year-on-year increase in its dividend to SEK6.75 per share in 2021.
It forecast low single-digit service revenue growth in 2022, with capex excluding spectrum and leasing assets of between SEK2.8 billion and SEK3.3 billion.
Net profit fell from SEK7.4 billion in 2020 to SEK4.3 billion, though revenue grew 2 per cent to SEK26.8 billion.
For Q4, profit of SEK953 million was down from SEK4.1 billion, on revenue of SEK7 billion, up 2 per cent.
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