April 17, 2018 / 7:10 AM / 6 months ago

UPDATE 1-Com Hem says still sees Tele2 deal clearance as Q1 profit matches forecasts

(Adds CEO comments)

April 17 (Reuters) - Cable TV firm Com Hem, which in January struck a deal to be bought by Tele2, on Tuesday said it still believed the acquisition would be approved as it posted first-quarter earnings in line with expectations.

* “Our judgement remains that we will be able to close this deal during the second half of this year,” Com Hem CEO Anders Nilsson told Reuters

* Nilsson said the first quarter financial numbers were in line with the firm’s plans and that it was comfortable to deliver on its 2018 guidance

* Nilsson said he now expects its Boxer segment could grow revenues in the future, which Com Hem did not see when it bought Boxer

* “If we can get growth in revenue (in Boxer) we will see even bigger growth in profitability than what we saw when we bought the company,” Nilsson said

* Com Hem Q1 revenue at 1.78 billion SEK ($212 million), underlying EBITDA at 738 million SEK

* Reuters poll: Com Hem Q1 adjusted EBITDA seen at SEK 735 million, revenue at 1.80 billion

* Said since price adjustment was larger than in previous years corresponding churn was also higher than usual in quarter with an increase to 14.8 pct from 13.6 pct

* Said expects churn to decrease into Q2 2018

* Repeated aims to deliver mid-single digit underlying EBITDA growth for the entire group annually

Source text for Eikon: Further company coverage: ($1 = 8.4096 Swedish crowns) (Reporting By Olof Swahnberg, editing by Johannes Hellstrom)

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