Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on TELE2 AB-B SHS. We currently have 4 research reports from 1 professional analysts.
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TELE2 AB-B SHS
TELE2 AB-B SHS
Becoming more Swedish over time
21 Jul 16
The Q2 release has confirmed the weak guidance given by the group at the begining of the year (while revenues should grow slightly by 2%, EBITDA should be between SEK4.6bn and SEK5bn vs SEK5.75bn in 2015 due to the roll-out and commercialisation of Tele2’s 4G network in the Netherlands). Q2 revenues, as expected, have grown by 1% yoy while EBITDA was down by 21%, primarily impacted by costs associated with the commercial push in the Netherlands following the 4G LTE network launch, but also by Sweden’s non-recurring items as well as declines in the fixed operations. The most important news in the quarter was indeed the announcement of the acquisition of TDC, one of the strongest B2B service providers in Sweden. On 21 June, Tele2 announced that it had signed a contract to acquire 100% of TDC Sweden for SEK2.9bn on a debt free basis. The transaction is subject to approval by the regulatory authorities, which is expected in Q4. TDC Sweden is a provider of B2B services in Sweden, serving both the public sector and many Swedish blue-chip customers with their entire end-to-end connectivity and communication needs. TDC Sweden has a strong position in attractive product segments, and a solid track record of profitable growth, delivering net sales in 2015 of SEK3.4bn and an EBITDA of SEK0.4bn. The operations had 809 full-time employees at the end of 2015. Tele2 estimates the annualised run rate for opex and capex synergies should amount to c.SEK300m, with additional one-off capex synergies estimated at SEK200m. Positive effects of cross-selling are also expected. Preliminary estimates for the integration costs and other one-off costs required to achieve synergies amount to c.SEK750m.
The growth engines are stalling
28 Jan 16
Exactly like in the previous quarters, Q4 sales increased by 2% yoy at constant currency while the EBITDA declined by 5% yoy despite a good performance in Sweden (+8% yoy). The reason for this expected weak performance was the Netherlands where increasing data traffic and costs associated with the MVNO agreement as well as an acceleration in the mobile rollout resulted in a decline in the Dutch EBITDA which amounted to SEK35m in Q4 vs SEK172m a year ago (and SEK275m two years ago). The headline news from this release is, however, the weak guidance for FY2016: while revenues should grow slightly (by 2% in our model) the EBITDA should be between SEK4.6 and 5bn vs SEK5.75bn in 2015 due to the roll out and commercialization of Tele2’s 4G network in the Netherlands.
How much is Tele2 worth?
26 Oct 15
Exactly like in Q2, Q3 sales increased by 3% yoy at constant currency while the EBITDA declined by 5% yoy despite a doubling of the EBITDA in Kazakhstan and stability in Sweden. The reason for this expected weak performance is The Netherlands where increasing data traffic and costs associated with the MVNO agreement as well as an acceleration in the mobile rollout resulted in a decline in EBITDA which amounted to SEK –83m.
Obsolete German and Austrian assets weigh on the overall Q2 EBITDA
21 Jul 15
Q2 sales increased by 4% yoy at constant change and are slightly better than what we were expecting. Note that although the solid growth registered in Sweden in Q1 (+4%) stopped due to a lower mobile customer stock, Kazakhstan confirmed logically its role as an engine of growth with a 23% increase in its sales yoy (corresponding now to 7.5% of Tele2's global sales). But the Q2 EBITDA was below our estimates (even if it is not a real surprise as we believe that the German and Austrian assets are obsolete) with a decline of 5% yoy despite a positive EBITDA in Kazakhstan and quite a good 3% growth in… Sweden. The German and Austrian EBITDAs were indeed down by 25% yoy and we don’t believe they are about to go up at any time soon. Note the group is maintaining its 2015 financial guidance of revenues at around SEK26-27bn with an EBITDA between SEK5.8bn and SEK6bn.
30 Nov 16
Abzena (ABZA): Interim results indicate happy customers (BUY) | Horizonte Minerals* (HZM): Fund raise completed (CORP) | SacOil* (SAC): Half-year trading statement (CORP) | Revolution Bars (RBG): New openings (BUY) | Amino Technologies* (AMO): Multi operator FUSION roll out (CORP)
Panmure Morning Note 05-12-16
05 Dec 16
Filtronic, the designer and manufacturer of microwave electronics for the wireless telco market, has provided a solid 1H17 trading update. As seen during 1Q17, demand for its new ultra-wide band integrated antennas has been driven by its key customer. Crucially the roll-out provides a reference client and adoption from other clients should be coming in due course. Having said that, programme roll-outs tend to be lumpy in nature and management expect activity to be slowing in the early part of 2H17 until customer concentration is remedied, meaning Filtronic will be exposed to short-term fluctuations in demand.
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.
N+1 Singer - Morning Song 06-12-2016
06 Dec 16
With FY16 volume and revenue already disclosed in the pre-close, the focus in today’s prelims is on PBT (£100.3m versus our £101m) and EPS (96.8p versus our 95.4p). No special dividend triggered this year (none forecast) and DPS is held at 46.8p (N1SE: 48.0p). On end markets, recent commentary is reiterated – the core business is growing, whilst consumer electronics will be subdued in the current year (competitive capacity from Solvay). On currency, there will be a material benefit in the current year (a little more than the £14m to £15m previously indicated), and a further tailwind next year if current rates are maintained (quantum TBC). There is also an investment of £10m today in a minority interest in Magma Global, Victrex’ oil and gas mega programme partner. Although the share price is now close to our TP of 1730p, we feel that there is enough in today’s announcement to retain a positive stance on medium term opportunities with strong cashflow and a special dividend potentially to look forward to in the current year.
Strategic focus at interims
30 Nov 16
KCOM’s interims show a focus on the continuing transformation of the business in cost and investment, under a single brand. The benefit of the cash injection from the network sale has led to the opportunity for significant investment both in the Hull & East Yorkshire division and the nationwide Enterprise division, to create a platform for growth. With a reiterated commitment to a minimum 6p dividend for FY17 and FY18, ongoing cost-saving initiatives, and proof of customer enthusiasm for the integrated platform which investment will further support, KCOM continues to deliver an attractive dividend in anticipation of its return to headline growth. Target 130p reiterated.
N+1 Singer - Mobile Streams - Applying the model to India
06 Dec 16
MOS has proven its model for mobile content in a very tough market, Argentina. After monitoring and examining a number of other markets it has successfully tested India to prove its commerciality. Further to this, key agreements with telecom operators have been signed and the Company has announced a £2.2m equity raise to help fund working capital. The Indian market is vast (c25x the size of Argentina) meaning MOS has to only be slightly successful to surpass its previous record results. If MOS can build a business with similar penetration it will vastly surpass our high growth forecasts that already imply the stock is very cheap.