UPDATE 2-Sweden's Telia appoints former Telenor executive as CEO
(Adds comment from incoming CEO, paragraphs 4,9, analyst comment, paragraphs 6-7, background, 3,5,8)
By Anna Ringstrom and Supantha Mukherjee
STOCKHOLM, Oct 13 (Reuters) - Swedish telecom operator Telia Company has appointed Patrik Hofbauer, former chief of Telenor in Sweden, as its new chief executive from Feb. 1, it said in a statement on Friday.
Hofbauer, CEO of Swedish state-owned gambling company Svenska Spel, will succeed Allison Kirkby who in July announced plans to step down in January 2024 to become the chief executive of BT Group.
Under Kirkby, Telia streamlined operations, divested assets and invested heavily in 5G networks to boost its profit, in line with plans it laid out in 2021.
Hofbauer said he wanted to maintain the company's strategies.
"The last five years I was outside telecoms, I followed the industry with great interest and I like to continue to execute the strategies that Telia has and move forward with digital transformation," Hofbauer said in an interview.
Telia, which operates telecom networks in the Nordics and the Baltics, also has broadband, television and streaming services, and counts more than 25 million customers.
On paper, Hofbauer seems to be a good fit and can provide value to both the Telecom and TV business in Telia, Danske Bank Credit Research analyst Mads Lindegaard Rosendal said.
"On the flip-side, adding a CEO with TV experience, could send a signal that the board of Telia wishes to keep the TV business, which has long been touted as a target for divestment," he said.
Hofbauer, a former professional ice hockey player, had also been the CEO of Telenor Broadcasting in Norway, CEO of pay TV and internet service provider Canal Digital in Sweden and CEO of NEC Scandinavia.
"People, leadership and culture are the most important part for me," Hofbauer said. "You can always invest and buy equipment." (Reporting by Anna Ringstrom and Supantha Mukherjee; Editing by Muralikumar Anantharaman)
