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TELIA - Telia AB News Story

SEK36.76 0.1  0.3%

Last Trade - 10:35am

Sector
Telecoms
Size
Large Cap
Market Cap £12.76bn
Enterprise Value £21.14bn
Revenue £7.54bn
Position in Universe 55th / 1832

BUZZ-Tele2: Slumps after Q1 core profit miss, guidance suspension

Tue 21st April, 2020 8:39am
** Shares in Tele2  TEL2b.ST  slump 9% after the Swedish
telecoms operator reports Q1 core profit slightly below
expectations and suspends 2020 guidance  urn:newsml:reuters.com:*:nL8N2C911H
    ** Tele2 also withdraws extraordinary dividend proposal
 urn:newsml:reuters.com:*:nFWN2C81K2
    ** Jefferies says that the reasons Tele2 gave to explain the
miss -- roaming, lower equipment margins, and bad debt --
deserve some scrutiny
    ** "We think Tele2 had a difficult 1Q with high marketing 
cost to maintain top-line momentum through volumes," Jefferies
says
    ** "The question is how specific all this is to Tele2's 2020
playbook to drive volumes in 1Q and then restart top-line
momentum through price rises," the broker adds
    ** JP Morgan says the withdrawal of guidance is "somewhat
disappointing", despite the fact that Telia  TELIA.ST  has done
the same, given that telcos are meant to be "the bastion of
stability and visibility of earnings"


($1 = 10.0422 Swedish crowns)

 ((marta.frackowiak@thomsonreuters.com))
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