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Tele2 Reports Strong Q4 Profit and Revenue Growth

Tele2 AB has reported higher profits and revenues in its fourth quarter, accompanied by a proposed dividend. Investors may see positive indicators for stock performance as earnings per share improved and net profit grew.

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AI Rating:   7
Earnings Per Share (EPS)
Tele2 reported an improvement in earnings per share, rising to 1.40 kronor from 1.35 kronor the previous year. This is a positive signal for investors as it indicates better profitability on a per-share basis.

Net Income
The company's net profit from total operations grew to 971 million kronor, up from 936 million kronor last year. This growth in net income presents a favorable outlook for shareholders.

Revenue Growth
Total revenue for Tele2 increased to 7.78 billion kronor, a rise from 7.68 billion kronor the year prior. This 1.3 percent organic growth indicates stability and potentially greater market confidence.

Profit Margins
Although detailed profit margins were not provided, the growth in revenue and net profit suggests maintaining healthy margins. The focus on improved profitability initiatives for the future further supports this view.

Free Cash Flow (FCF)
The proposal of a dividend of 6.35 Swedish kronor per share, equivalent to 100 percent of 2024 equity free cash flow, reflects strong management of free cash flow and returns to shareholders. This could positively influence investor sentiment.

Future Outlook
Looking ahead to fiscal 2025, Tele2 projects low single-digit organic growth of end-user service revenue, and mid- to high single-digit growth of underlying EBITDAaL, which seems moderately positive. The company is also initiating a transformation aimed at improving profitability, including workforce reductions. This could have both positive and negative impacts depending on execution and market reaction.
Stocks:  TLTZF