GlobalConnect Group continues strong growth trajectory in 2023

While continuing significant fiber and datacenter investments in 2023, digital infrastructure and connectivity provider GlobalConnect Group reported a strong revenue and profitability growth for the year, emphasizing its position as the leading connectivity provider, futureproofing the Nordics and beyond.

In a year characterized by a turbulent global landscape with inflation and growing uncertainty, GlobalConnect Group’s recurring revenue grew by 11.4% compared to the previous year. The company’s total revenue grew by 6.2% to reach 7.6 billion SEK, while profitability (adjusted EBITDA) increased by 11% to 4.0 billion SEK with a 53.2% margin. GlobalConnect’s investments in digital infrastructure amounted to 5.8 billion SEK in 2023, which is approximately at the same level as 2022, accounting for inorganic investments.

“Our 2023 results are yet another proof of our position as one of the leading and fastest-growing digital infrastructure providers in Europe, delivering on our promise to connect people, businesses, and society. More than half of all data traffic in the Nordics now passes through our network,” says Martin Lippert, Group CEO, GlobalConnect.

Connecting 847,000 homes with fiber and early momentum in Finland

GlobalConnect’s fiber-to-the-home (FTTH) fiber build-out continued across the Northern European region with almost 100,000 additional private homes connected during 2023, reaching a total of 847,000 homes connected.

A key 2023 milestone was entering the FTTH market in Finland which poses a strong growth opportunity for GlobalConnect. Fiber coverage in Finland is the lowest among the Nordic countries, currently accounting for 60 percent of households. By comparison, fiber coverage in Sweden is approximately 93 percent. Today, many Finns are dependent on mobile-based broadband solutions, which creates a significant opportunity to increase GlobalConnects pan-Nordic footprint:

“We aim to make an important impact on the digital foundation of Finland and plan to invest EUR 500 million by 2030 in building fiber across the country. We are already experiencing great momentum, leveraging on our deep knowledge and experience from digital infrastructure roll-out across the Nordic region,” says Lasse Pilgaard, Group CFO, GlobalConnect.

Building and securing critical digital infrastructure

Security has been an increasing driver for GlobalConnect in 2023, both in terms of offering integrated connectivity security solutions to protect businesses better against increased cyber threats and in terms of building resilient critical infrastructure connecting the Nordics and beyond.

“The magnitude of our fiber network comes with great responsibility. Pivotal governmental institutions, hospitals, businesses, and most parts of society in the Nordics are dependent on our infrastructure. We take this responsibility very seriously and invest in futureproofing the region’s digital infrastructure, which improves national security and attracts global tech investments,” says Martin Lippert.

2023 saw the final stages of the construction of ‘the new digital highway’, a robust mega-capacity fiber cable running 2,600 kilometers from the very north of Sweden to Berlin. The cable has the capacity to transport all data currently being produced in the Nordics and represents a record-setting digital infrastructure project that will serve as a critical connection between the Nordics and Mainland Europe.

Sustainability as a license to operate

As one of the leading providers of critical digital infrastructure in Northern Europe, GlobalConnect experiences first-hand how connectivity empowers societies and improves lives, supporting everything from hospitals and schools to large and small businesses and private homes.

“Our experience in working intensively with the many aspects of ESG is that it benefits our entire value chain. We have an engaged organization, which is exploring innovative solutions, and ensuring that we deliver responsibly, lower our carbon footprint and focus on building a positive societal impact. For us, sustainability is a license to operate,” says Sofia Lisa Dinesen, SVP Sustainability and Strategy at GlobalConnect Group.

A major milestone for GlobalConnect in 2023 was the approval of the Group’s commitment to the Science Based initiative targets until 2030:

Scope 1: 42% reduction

Scope 2: 100% renewable energy

Scope 3: 25% reduction

Read the full annual report here

Key figures 2023 GlobalConnect Group

* Including the inorganic investment in the 2022 acquisition of Open Universe and Telenor Sweden's SDU fiber assets.

** Extraordinarily high in 2022 due to the acquisition of Open Universe and Telenor Sweden's SDU fiber assets.