Sweden's Tele2 maintains 2020 guidance, Q3 profit in line

Credit: REUTERS/ALEXANDER DEMIANCHUK

Swedish telecoms operator Tele2 reported quarterly core earnings in line with market forecasts on Tuesday and stuck to its outlook for roughly unchanged operating profit this year.

Adds detail, background

STOCKHOLM, Oct 20 (Reuters) - Swedish telecoms operator Tele2 TEL2b.ST reported quarterly core earnings in line with market forecasts on Tuesday and stuck to its outlook for roughly unchanged operating profit this year.

The firm said it was expecting a negative impact on earnings from the novel coronavirus pandemic of 70-90 million crowns in the fourth quarter, down from a previous forecast of 100-120 million per quarter throughout this year.

Third-quarter adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were 2.82 billion crowns ($319.6 million) versus 2.78 billion in the year-earlier quarter and a 2.76 billion mean forecast in a poll of analysts.

Tele2 maintained its forecast for adjusted operating earnings (EBITDAaL) to come in roughly flat this year compared to 2019 with capital expenditure, excluding spectrum and leases, of 2.5 billion to 3.0 billion crowns.

It also reiterated its mid-term guidance of low single-digit growth of end-user service revenue, mid-single-digit growth of adjusted operating profit, and capex of 2.8 billion to 3.3 billion crowns.

Tele2 in July reinstated its proposal of an extraordinary dividend of 3.50 crowns per share, which was withdrawn in April due to the COVID-19 pandemic.

($1 = 8.8256 Swedish crowns)

(Reporting by Helena Soderpalm; editing by Niklas Pollard)

((helena.soderpalm@thomsonreuters.com; +46 8 700 10 15; Reuters Messaging: helena.soderpalm.reuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More