Definitions

Financial Metrics and Alternative Performance Measures


Capital expenditure (Capex)
Additions to intangible assets, tangible assets and right-of-use assets (leases) that are capitalized on the balance sheet.

Capex paid
Cash paid for the additions to intangible and tangible assets net of cash proceeds from sales of intangible and tangible assets.

Earnings per Share
Profit/loss for the period attributable to the parent company shareholders in relation to the weighted average number of shares outstanding during the fiscal year.

EBITDA
Operating profit/loss before depreciation/amortization, impairment as well as results from shares in joint ventures and associated companies.

This metric is reported in accordance with IFRS16 accounting standard for leases from January 1, 2019. Hence, EBITDA for periods before January 1, 2019 are not comparable to EBITDA after January 1, 2019.

Economic net debt
Net debt excluding lease liabilities. Prior to the completion of the Kazakhstan divestment, also liabilities to Kazakhtelecom, liability for earn-out obligation in Kazakhstan and loan guaranteed by Kazakhtelecom are excluded.

Economic net debt / Underlying EBITDAaL
Economic net debt divided by underlying EBITDAaL rolling twelve months.

End-user service revenue
Revenue from end-user excluding equipment revenue. 

Equity free cash flow (EFCF)
Cash flow from operating activities less capex paid and amortization of lease liabilities.

Equity per share
Equity divided by the total number of outstanding shares.

Items affecting comparability
Disposals of non-current assets, and transactions from strategic decisions, such as capital gains and losses from sales of operations, acquisition costs, integration costs due to acquisition or merger, restructuring programs from reorganizations as well as other items that affect comparability.

Net debt
Interest-bearing non-current and current liabilities excluding equipment financing and provisions, less cash and cash equivalents, current investments, restricted cash and derivatives.

Net debt / Underlying EBITDA
Net debt divided by underlying EBITDA rolling twelve months.

Operating cash flow (OCF)
Adjusted EBITDAaL less capex paid.

Operating profit/loss (EBIT)
Revenue less operating expenses.

Organic growth
Calculated at constant currency, meaning that comparative figures have been recalculated using the currency rates for the current period, and excluding effects of divestments and acquisitions.

Organic growth has replaced “like-for-like” growth, which was used prior to Q4 2018.

TSR
Total shareholder return including change in the share price and cash dividends.

Underlying EBITDA
EBITDA excluding items affecting comparability.

This metric is reported in accordance with IFRS16 accounting standard for leases from January 1, 2019. Hence, underlying EBITDA for periods before January 1, 2019 are not comparable to underlying EBITDA after January 1, 2019.

Underlying EBITDAaL
Underlying EBITDA as well as lease depreciation and lease interest costs according to IFRS 16.

Tele2 considers underlying EBITDAaL to be a relevant measure of the business performance since it includes the cost of leased assets (depreciation and interest), which is not included in underlying EBITDA according to IFRS 16. This metric is used to calculate leverage.

Underlying EBITDA excluding IFRS16
Underlying EBITDA applying the IAS17 accounting standard for leases for all periods.

Tele2 considers underlying EBITDA excluding IFRS 16 to be a relevant measure to present during 2019 for comparability with 2018 and 2017 since IFRS 16 Leases has not been adopted retrospectively.

Underlying EBITDA margin
Underlying EBITDA in relation to revenue excluding items affecting comparability.

 

Industry Terms


Addressable footprint
Number of households connected to our FiberCoax and fiberLAN networks, third party open networks, and connected and/or passed by fiber in networks unbundled by the Group.

Analogue
Derived from the word "analogous" which means "similar to" in phone transmission, the signal being transmitted (phone, video or image) is "analogous" to the original signal.

ASPU
Average monthly spending per user for the referenced period. ASPU is calculated by dividing the monthly end-user service revenue for the period by the average number of unique customers or RGUs for the same period. The average number of unique customers/RGUs is calculated as the number of unique customers/RGUs on the first day in the period plus the number of unique customers/RGUs on the last day of the respective period, divided by two.

Backbone
A backbone refers to the principal data routes between large, interconnected networks.

Bundling
Bundling is a marketing strategy that involves offering several services for sale as one combined service.

B2B
Business-to-business.

B2C
Business-to-consumer.

CPE
Customer premises equipment such as a router or set top box.

Churn
The voluntary or involuntary discontinuance of customer agreements (for unique customers) or service agreements (for RGUs), expressed as an annualized percentage of the total number of unique customers or RGUs.

Digital
The use of a binary code to represent information in telecommunications recording and computing. Analog signals, such as phone or music, are encoded digitally by sampling the phone or music analog signals many times a second and assigning a number to each sample.

DSL
Digital subscriber line.

DTT
Digital terrestrial television.

EuroDOCSIS
Data Over Cable Interface Specification is an international standard that defines the communications and operation support interface requirements for a data over cable system. It permits the addition of high-speed data transfer to an existing cable television system.

FiberCoax network
FibreCoax is a technology used by the cable television industry to provide a variety of services, including analog television, digital television (both standard and high definition), VoD, telephony and highspeed data access using a combination of optical fibre and traditional coaxial cable.

Gigabyte (GB)
Measurement of data usage.

Gbit/s
Gigabits per second. A unit of data transfer rate equal to 1,000,000,000 bits per second. The bandwidth of a broadband network is usually specified in gigabits per second.

HD
High Definition.

IoT
Internet of Things.

IP
Internet Protocol is a protocol used for communicating data across a packet-switched network. It is used for transmitting data over the Internet and other similar networks. The data is broken down into data packets, each data packet is assigned an individual address, then the data packets are transmitted independently and finally reassembled at the destination.

IP Television (IPTV)
Internet Protocol Television is the transmission of television content using IP over a network infrastructure, such as a broadband Internet connection.

ISDN
Integrated Services Digital Network is a set of communication standards for simultaneous digital transmission of voice, video, data, and other network services over the traditional circuits of the public switched telephone network.

LAN
Local area network based on Ethernet-based access technology.

Large enterprise
Enterprise with more than 99 employees.

LTE
Long Term Evolution is the project name of a new high performance air interface for cellular mobile communication systems.

Mbit/s
Megabits per second. A unit of data transfer rate equal to 1,000,000 bits per second. The bandwidth of a broadband network is usually specified in megabits per second.

MBB
Mobile broadband

MDU
Multi-dwelling unit. Housing with multiple, separate housing units.

MNO
Mobile network operator.

Mobile M2M
Mobile machine-to-machine.

Mobile prepaid
Mobile subscription for which credit is purchased in advance of service use. The credit is valid until consumed and users can top up their credit at any time.

Mobile postpaid
A mobile subscription which is billed on a regular basis after services have been received, usually at the end of each month.

MVNO
Mobile virtual network operator.

NPS
Net Promoter Score, a measure of customer satisfaction.

Open LAN
A LAN, which is most commonly managed by a communications operator and characterised by third-party ownership and by various service providers. The service providers offer their services directly to end customers.

OTT
Over-the-top video.

PSTN
Public Switched Telephone Network.

RGU
Revenue generating units, which refer to each service subscribed to by a unique customer. A unique customer who has several services is counted as several RGUs but one unique customer.

RLAH
Roam Like At Home. An EU regulation concerning roaming and net neutrality with the purpose of removing roaming fees within the EU.

SDU
Single dwelling unit, such as a free-standing or separate house.

SME
Small and medium enterprises. Refers to companies with 10-99 employees.

SoHo
Single office/Home office. Refers to companies with 1-9 employees.

Unique customer
The number of individual customer agreements to subscribe to one or more services (RGUs).

Vertical LAN
A LAN that is usually built and controlled by an individual operator with an exclusive right to provide its services to end-customers.

VoD
Video on Demand is the transmission of digital video data on demand, by either streaming data or allowing data to be downloaded over a broadband connection.

VoIP
Voice over IP.

VPN
Virtual private network.

WiFi
Wireless LAN.

xDSL
Digital Subscriber Line is a generic name for a range of digital technologies relating to the transmission of Internet and data signals from the telecommunication service provider's central office to the end customer's premises over the standard copper wire used for voice services.