Tele2 announced a Capex guidance of SEK 3-3.5 billion in 2019 as compared with SEK 3.48 billion in 2018 and SEK 2.35 billion in 2017.
“Capex, excluding spectrum, is expected to be SEK 3-3.5 billion during the rollout phase of 5G and Remote-PHY in the fixed business, slightly up from an expected range of SEK 2.9-3.2 billion in 2019,” Tele2 CEO Anders Nilsson said.
Tele2 indicates that its final investment for 2019 will depend on the 5G roll out it planned with Telenor.
Tele2’s technology management team includes Thomas Bjorklund, executive vice president, Technology Mobile; Thomas Helbo, Executive Vice President, Technology Fixed; and Joss Delissen, executive vice president, IT.
Tele2 investment towards Capex reached SEK 2,587 million (1,662) in Sweden, SEK 144 million (114) in Lithuania, SEK 113 million (83) in Latvia, SEK 87 million (83) in Estonia, SEK 128 million (90) in Croatia, SEK 274 million (501) in Kazakhstan (discontinued) and SEK 29 million (30) in IoT business in 2018.
Tele2’s Capex in Sweden was SEK 2,587 million (1,662) in 2018 with spending on network reaching SEK 802 million (802), IT SEK 589 million (424) and customer equipment SEK 380 million (361) in 2018. Capex to revenue ratio was 11 percent in 2018 vs 7 percent in 2017.
Tele2 and Telenor in December won 2×10 MHz in an auction of 700 MHz spectrum to be used by its network joint venture Net4Mobility. The spectrum is valid until December 31, 2040, and was awarded against an amount of SEK 1,442 million.
Tele2 reported 25 percent increase in revenue to SEK 7.122 billion in Q4 and 10 percent hike to SEK 23.704 billion in 2018. The 25 percent increase in revenue was mainly related to the merger with Com Hem.
Tele2 CFO Mikael Larsson said the company has identified additional cost savings and now aim for an annual run rate of SEK 900 million, double the previous target — through the integration process which started after the merger with Com Hem.
“We also aim to deliver this faster than previously expected, now within three years instead of five, and half to be realized by the end of 2019,” Mikael Larsson said.