Swedish telecoms operator Tele2 reported on Thursday quarterly core earnings above market forecasts and proposed an extraordinary dividend of 3 crowns per share.

Tele2, which stuck to its financial guidance, said that although the pandemic continues, the future was now more predictable, enabling it to distribute more to shareholders.

“In the coming quarters, we will shift our focus back toward growth and execute on the necessary initiatives that will ensure success in a post-pandemic world,” Chief Executive Officer Kjell Johnsen said in a statement.

The company, rival to Sweden’s Telia and Norway’s Telenor, said it was still expecting savings of at least 1 billion crowns by the end of 2022.

First-quarter adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were 2.63 billion crowns (US$312.9 million) versus 2.50 billion crowns in the year-earlier quarter and a 2.51 billion mean forecast, according to Refinitiv data.

Tele2 expects roughly flat end-user service revenue this year, and adjusted operating earnings (EBITDAaL) growth of 24 per cent compared with 2020, assuming international roaming at a similar level.

It also maintained its mid-term financial outlook, adding that it expected capital expenditure, excluding spectrum and leases, of 2.8 billion to 3.3 billion crowns this year, including 5G roll-out in all its markets.