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Tele2 (TEL2) investor relations material
Tele2 Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved 2% organic growth in end-user service revenue and 11% growth in underlying EBITDA/EBITDAAL, driven by transformation efforts, cost control, and strong Baltic and Sweden Business performance.
Equity free cash flow reached SEK 1.8 billion in Q3 and SEK 6.2 billion over the last twelve months, up 60% year-over-year.
Workforce reduced by over 600 positions, supporting cost efficiencies and transformation targets.
5G network now covers 99.9% of Sweden’s population and 90% of its landmass, recognized as a global leader in 5G video experience.
Announced creation of the first pan-Baltic tower company in partnership with GCI, with transaction valued at EUR 560 million and closing expected in Q1 2026.
Financial highlights
Q3 2025 end-user service revenue was SEK 5.6 billion (+2% organic YoY); total revenue SEK 7.4 billion (+1% organic YoY).
Underlying EBITDA/EBITDAAL grew 11% to SEK 3.1–3.5 billion, with margin improving to 42–47.5% year-over-year.
Net profit increased to SEK 1.3 billion (Q3 2024: SEK 1.1 billion); EPS SEK 1.86.
Capex (excluding spectrum and leases) decreased to SEK 643–745 million, reflecting investment prioritization.
Economic net debt at SEK 22.9 billion, leverage at 2.0x underlying EBITDA/EBITDAAL, below target range.
Outlook and guidance
2025 guidance: low single-digit organic growth in end-user service revenue, underlying EBITDA/EBITDAAL growth slightly above 10%, and capex-to-sales ratio lowered to ~12% (previously ~13%).
Restructuring costs for 2025 anticipated at SEK 500 million; full-year Boxer revenue expected SEK 225 million below 2024.
Dividend policy: at least 80% of equity free cash flow to be distributed as ordinary dividend.
Transformation initiatives continue, targeting further cost and complexity reductions and workforce optimization.
Q4 will see final SEK 370 million payment for Swedish spectrum licenses; 1800 MHz spectrum auction payments split between Q1 2026 and Q1 2028.
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