Tele2 AB on Tuesday reported higher third-quarter profit driven by cost controls and modest revenue growth, and lowered its capital spending forecast for the year.
The Swedish telecom operator said its underlying earnings before interest, tax, depreciation, and amortization after leases, a key profit metric, rose 11% organically from a year earlier to 3.1 billion Swedish Kronor.
Total revenue for the quarter increased 1% organically to 7.4 billion Swedish Kronor, while net profit grew to 1.3 billion Swedish Kronor from 1.1 billion Swedish Kronor in the same period last year.
Reflecting its efficiency gains, Tele2 reduced its full-year guidance for capital expenditure as a percentage of sales to around 12%, down from a previous forecast of about 13%.
The results follow a trend for the company, which raised its full-year profit forecast in July after an aggressive cost-cutting program.
"Our strict approach to cost and priorities is now deeply integrated into the company culture and daily operations," said President and Group CEO Jean Marc Harion.
"That means we are now able to gradually increase our efforts to optimise our teams, automate our processes and launch growth initiatives within the business units, ensuring that we invest where it matters most to our customers."
More from this issuer
Related coverage
Swedish telecom operator Tele2 said it will form a 50/50 joint venture for its Baltic telecom towers with Global Communications Infrastructure, a platform backed by Manulife Investment Management.
Swedish telecom operator Tele2 on Thursday raised its full-year profit forecast, citing the early success of an aggressive cost-cutting program.