Tele2 Group CEO Kjell Johnsen credited an ongoing business transformation project for helping to mitigate some of the impact of a challenging macro-economic environment, citing a particular benefit in managing rising energy costs.

In a statement accompanying the Sweden-based operator’s Q3 earnings, Johnsen noted energy costs were SEK80 million ($7.2 million) higher during Q3, but predicted a stabilisation of these and inflation in the medium-term as a result of the transformation strategy.

But he conceded the near-term picture was more tumultuous, with “these negative external effects” impacting Tele2’s performance.

“Fortunately, Tele2 is somewhat helped by the growth momentum we have generated over the past quarters, leaving the net effect relatively limited.”

Johnsen credited progress in its 5G deployment as one of the drivers of its business, despite some lingering effects on its working capital due to efforts to offset the effects of Covid-19 (coronavirus).

During the quarter Tele2 “secured important radio spectrum in the Baltics”, leaving it clear to “focus on building the networks”.

End-user service revenue grew 4 per cent year-on-year to SEK5.1 billion, driven by its mobile business.

Overall revenue was 6 per cent higher at SEK7.1 billion.

Net profit declined from SEK1.1 billion to SEK994 billion, though the metric fared better in the nine months to end-September, rising from SEK3.4 billion in 2021 to SEK4.3 billion.

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