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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.
Making Mobiles Better
17 Jan 17
Mobile phones are increasingly the key connection for the modern world. This means that the performance of mobile phones, and their networks, is going to become more critical for all the apps and businesses that rely on them. New technologies such as VR, AR, and AV will need better, more reliable connections to really move into the mainstream. In this thematic piece we attempt to identify some of the most important issues facing mobile phone networks and their users, and start to identify solutions and enablers that will solve these problems and create value by doing so.
N+1 Singer - Morning Song 16-01-2017
16 Jan 17
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The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Small Cap Breakfast
19 Jan 17
SuperAwesome — The London based specialist in e-compliance is considering an IPO in its home town according to City A.M. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January
The Cybersecurity Rebellion: “No, I’m Spartacus!”
07 Jun 16
Steve “Woz” Wozniak, infamous co-founder of Apple, was the latest culprit to send shivers across the tech world by claiming Cybersecurity is the greatest threat the world has faced since the atom bomb. Mr Wozniak was alluding to the heightened sense of fear that recent high profile breaches have caused Cybersecurity to be put at the forefront of political, corporate and now it would appear, investor agendas. As the topic gains increasing awareness, it gives rise to a number of companies claiming to be a “thought leader” in the Cybersecurity space, holding the best IP and the best routes to market. With many companies singing from the same loss making hymn sheet it is making it ever difficult to spot the true “Spartacus” from the crowd.
Small Cap 2017 - The only certainty is uncertainty
18 Jan 17
AIM will turn twenty-two this June and it is fair to say it has had its fair share of ups and downs, with 2016 being a case in point. We ask what will the rest of 2017 hold in store? Arguably the US dollar, Brexit, bonds, and banks will be the four big themes for the new year.