Tele2 says will aim to grow dividends, Q4 core profit matches forecasts

Telecom operator Tele2, which is taking over cable TV firm Com Hem, said on Friday it would aim to grow dividends as it posted a fourth-quarter core profit in line with expectations.

Q4 sales rose to SEK 6.64 bln ($845.8 mln) from 6.34 bn vs 6.46 bln seen in Reuters poll, while EBITDA increased to SEK 1.53 bln from 1.46 bln vs 1.52 bln seen in poll

Kinnevik controlled Tele2 says new dividend policy is to increase dividend over time, and sticks to principle of returns of any excess cash. The company has proposed a dividend of 4.00 SEK for 2017

Says Challenger program expected to result in more than SEK 1 bln of benefits in 2018 compared to the 2014 baseline, including the now discontinued operations in the Netherlands and Austria

Says integration of acquired TDC is progressing well and we are approaching our target run-rate benefits of around SEK 300 million

Says in 2018 we will therefore look for further opportunities beyond our earlier target level, and we believe this is achievable with a lower integration cost than the SEK 750 million previously communicated

Tele2 in January agreed a $3.2 billion takeover of Com Hem amid a global wave of mergers reshaping the telecoms and media sector

Another deal involving Kinnevik controlled companies was announced on Thursday, when Danish telecoms operator TDC said it had agreed a $2.5 billion takeover of Swedish media group MTG’s broadcasting and entertainment business Source text for Eikon: Further company coverage: