Tele2 (TEL2) Q2 2025 earnings summary

Executive summary

• Transformation initiatives and strict cost control drove a 15% organic increase in underlying EBITDAaL in Q2 2025, with strong contributions from the Baltics and Sweden Business, and a focus on agility and simplification.

• Workforce reduced by over 500 positions by June, supporting efficiency, profitability improvements, and a cultural shift towards cost consciousness.

• Strong internal support for operational simplification and cost governance, with systematic renegotiation of large contracts.

• Recognized as Sweden's most sustainable company for the second consecutive year and ranked 23rd globally by TIME Magazine; also named Europe's climate leader by Financial Times.

Financial highlights

• End-user service revenue grew 2% organically year-over-year in Q2 2025, led by the Baltics and Sweden Business, with total revenue at SEK 7.3 billion (+1% organic YoY).

• Underlying EBITDAaL increased 15% year-over-year to SEK 2.9 billion, with margin improving to 46.1% from 40.8%.

• Equity free cash flow reached SEK 1.6 billion in Q2 2025, up 38% year-over-year, and SEK 5.6 billion over the last twelve months.

• Net profit was SEK 1.2 billion in Q2 2025, up from SEK 946 million in Q2 2024; earnings per share SEK 1.73 vs. SEK 1.39.

• CapEx-to-sales ratio was 12.4% in Q2 2025, averaging 12% for H1.

Outlook and guidance

• Full-year 2025 guidance for underlying EBITDAaL raised to slightly above 10% organic growth (previously mid- to high single-digit).

• End-user service revenue expected to see low single-digit organic growth, with a 1 percentage point drag from Boxer.

• CapEx-to-sales expected at 13% for 2025, declining to 10-12% from 2026.

• Anticipated SEK 500 million in restructuring costs for 2025.