Tele2 AB (TLTZF.PK), the Swedish telecommunications company, announced a rise in both profit and revenue for the fourth quarter on Wednesday.
The company's Board of Directors has proposed a regular dividend of 6.35 Swedish kronor per share, representing full coverage of the 2024 equity free cash flow.
Looking forward to fiscal year 2025, Tele2 anticipates a low single-digit organic growth in end-user service revenue, mid- to high single-digit organic growth in underlying EBITDAaL, and capital expenditure equating to approximately 13 percent of sales.
Tele2 also revealed it has embarked on a transformation strategy designed to boost profitability by 2025. This includes implementing tougher priorities, enhancing cost awareness, and streamlining its organizational structure, which entails a workforce reduction of about 15 percent over the next 12 months, pending negotiations with unions.
During the quarter, the net profit from total operations increased to 971 million kronor, compared to 936 million kronor the previous year. Earnings per share rose to 1.40 kronor, up from 1.35 kronor last year.
Profit after financial items from continuing operations climbed to 1.21 billion kronor, up from 1.15 billion kronor a year earlier.
The underlying EBITDAaL grew to 2.66 billion kronor from last year's 2.62 billion kronor, reflecting a 1.3 percent organic increase, primarily fueled by growth in end-user service revenue.
Total revenues reached 7.78 billion kronor, an improvement from 7.68 billion kronor last year, with organic growth at 1.3 percent.
