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Tele2 (TEL2) investor relations material

Tele2 Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary17 Jul, 2025

Executive summary

  • Transformation initiatives and strict cost control drove a 15% organic increase in underlying EBITDA/EBITDAAL in Q2 2025, with strong contributions from the Baltics and Sweden Business.

  • Over 500 workforce positions reduced by June, supporting efficiency, profitability, and a cultural shift.

  • Investments prioritized in own channels, data analytics, and AI to reduce third-party dependency and drive top-line growth in Sweden.

  • Recognized as Sweden's most sustainable company and ranked 23rd globally by TIME Magazine; also named Europe's climate leader.

Financial highlights

  • End-user service revenue grew 2% year-over-year in Q2 2025, led by the Baltics and Sweden Business; Sweden Consumer remained flat due to legacy declines.

  • Underlying EBITDA/EBITDAAL increased 15% year-over-year, with margin up to 46.1% from 40.8% and net profit at SEK 1.2 billion.

  • Equity free cash flow reached SEK 1.6 billion in Q2, up 38% year-over-year, and SEK 5.6 billion over the last 12 months.

  • CapEx to sales at 12.4% in Q2, averaging 12% for H1 2025.

  • Leverage at 2.2x underlying EBITDA/EBITDAAL, below the target range, with economic net debt reduced by SEK 1.5 billion since year-end 2024.

Outlook and guidance

  • 2025 guidance for underlying EBITDA/EBITDAAL raised to slightly above 10% organic growth (previously mid- to high single-digit), reflecting strong H1 performance.

  • Low single-digit organic growth expected for end-user service revenue, with a ~1 percentage point drag from Boxer.

  • CapEx to sales expected at 13% for 2025, with a mid-term range of 10–12% from 2026 onwards.

  • Around SEK 500 million in restructuring costs anticipated for 2025.

  • Ordinary dividend of SEK 6.35 per share for 2025, paid in two tranches.

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Frequently asked questions

Tele2 AB is a telecom operator in Sweden. The company offers services for residential and business customers, including mobile and fixed broadband and telephony. It also offers fixed-mobile converged services; dedicated channels, international and domestic calling cards; Internet services; TV distribution through IPTV and multi-channel networks; and conferencing systems. Tele2 provides its services under the Tele2 brand as well as using white label solutions for selected international markets. Tele2 AB was founded in 1993 and is based in Stockholm, Sweden.

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