COMMENTARY: High exposure of Tele2 due to Tisak and Agrokor

COMMENTARY: High exposure of Tele2 due to Tisak and Agrokor

Foto: Damir Brkić

Although Tele2's business results are very good and above expectations in terms of revenue, one information from the report published by the Swedish owner Tele2 AB shows a very high exposure to banks, which is the result of Agrokor's major financial problems and of the companies within the concern, mainly Tisak. This exposure rose to very high 123 million Swedish crowns, or HRK 96 million.

As Tele2 claims, the value of receivables from Tisak at the end of the first quarter of this year was 51 million Swedish crowns, or 39 million kuna.

Namely, as Tele2 claims, as the banks were unable to collect from Tisak, they expect payment from Tele2, whereby this telecommunications company states that they hope it will not come to that and that thanks to the new Act, popularly known as Lex Agrokor, Tisak, will be able to fulfill its obligations towards banks.

Let's go back to the business results that show a slowdown in capital investment after a big 4G investment at the end of 2015 and early 2016. The customer base has declined slightly in the first quarter of this year, while on an annual level, at the end of March this year, Tele2 realized growth.

Profit before interest, taxes, amortization and depreciation has increased, while profit before interest and taxes has been negatively reduced to positive zero.

All in all, this is a very good result of the third largest domestic telecommunications company. In a market that is quite saturated and where the fights are with tariffs, Tele2 fights with the strongest telecom operator Hrvatski Telekom and the second largest Vipnet, and these results show once again that the telecommunications market in Croatia has recovered and has started to grow again.

More from category

Verizon Selects Samsung for 5G Commercial Launch

Verizon Selects Samsung for 5G Commercial Launch

12 Jan 2018 comment

Samsung announced that it has been selected to supply Verizon with commercial 5G Fixed Wireless Access (FWA) network solutions. The two companies will begin by launching commercial 5G services in Sacramento, California in the second half of 2018.

Ericsson Signs Funding Agreements for 5G Research

Ericsson Signs Funding Agreements for 5G Research

2 Jan 2018 comment

Ericsson has signed agreements for credit facilities with the Nordic Investment Bank (NIB) for USD 220 million, maturing in 2023, and AB Svensk Exportkredit (SEK) for USD 150 million, maturing in 2025.

Huawei and NTT DOCOMO Achieve a New Breakthrough in 5G

Huawei and NTT DOCOMO Achieve a New Breakthrough in 5G

27 Dec 2017 comment

Huawei and NTT DOCOMO have completed a successful joint field trial for 5G mobile communications over a long distance with 39 GHz Millimeter Wave (mmWave) band in Yokohama, one of largest commercial areas in Japan.