Q2 2024 Tele2 AB Earnings Call Transcript
Key Points
- Tele2 AB (TLTZF) reported a 4% growth in end-user service revenue for Q2 2024, marking 13 consecutive quarters of organic top-line growth.
- Underlying EBITDAaL grew by 3%, supported by earlier price adjustments in Sweden B2C.
- The company maintained a solid cash flow, keeping financial leverage below the target range at 2.44 times.
- Tele2 AB (TLTZF) achieved a significant milestone by migrating Comviq into a modern IT environment, enhancing digitalization and customer experience.
- Tele2 AB (TLTZF) received recognition for sustainability efforts, being named Sweden's most sustainable company by Time Magazine and a Climate Leader by Financial Times.
- Sweden B2B end-user service revenue grew by only 2%, slower than previous quarters due to the challenging economic environment.
- The company faces tougher comparisons in the second half of the year due to earlier price adjustments.
- Economic headwinds have impacted Swedish companies, leading to scaled-down or delayed purchases, affecting Tele2 AB (TLTZF)'s performance.
- The number of fixed broadband RGUs declined by 3,000 in the quarter, driven by single-play customers.
- Tele2 AB (TLTZF) had a SEK8 million headwind from energy costs year-on-year, impacting financial performance.
Good morning, everyone. Welcome to this Tele2 report call for the second quarter of '24. With me here in CSI, I have the usual suspects, Charlotte Hansson, our Group CFO; Hendrik de Groot, our Chief Commercial Officer; and Stefan Trampus, who runs B2B. So let's then turn to slide 2 for the highlights.
I would say I'm pleased that our good performance in the beginning of the year has continued in the second quarter. We grew end-user service revenue by 4% in the quarter, marking 13 consecutive quarters of organic top-line growth. And underlying EBITDAaL grew by 3%, supported by earlier price adjustments in Sweden B2C. We also continued to deliver a solid cash flow that kept our financial leverage below our target range at 2.44 times.
Our strategy execution reached an important milestone in the quarter as we finally migrated Comviq into our modern mass market IT environment. By that, we have transformed our previously fragmented environment to into only two IT stacks in Sweden and are moving full speed
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