Tele2 pivot to streaming fails to offset TV base decline

Tele2 saw revenues from its TV business decline in the quarter to December as growth in its streaming offering failed to offset declines in its fixed and digital-terrestrial subscriber bases.

The Swedish and Nordic operator saw revenues from TV drop 4% year-on-year in the quarter to SEK699 million, with revenues from its digital-terrestrial Boxer offering falling sharply by 9% to SEK259 million.

Revenues from the operator’s cable and fibre TV services fell by 1% to SEK420 million.

The operator’s digital TV revenue-generating unit base fell by 9,000 in the quarter to end with 927,000 subscribers. Boxer’s base fell by 6,000 to 288,000, while the cable and fibre base fell by 3,000 to 638,000.

Tele2 said that its recently launched Tele2 Play+ service “continued to show solid performance as customers continue to roll off the 12-month free subscription period”.

The operator recently launched a premium offering on the ack of its Tele2-branded streaming offering.

Overall, Tele2 posted revenues of SEK7 billion for the quarter, and underlying EBITDAaL of SEK2.37 billion.

“Tele2 is a growth company at heart, aiming to be the leading telco in the Nordic and Baltic region. We are witnessing positive results from our strategic initiatives, demonstrating the viability of our way forward. I am confident in our ability to succeed and deliver on our mid-term guidance and excited to continue building sustainable growth,” said CEO Kjell Johnsen.