Tele2 (TEL2) Q3 2025 earnings summary

Executive summary

• End-user service revenue grew 2% organically in Q3 2025, driven by the Baltics and Sweden Business, with underlying EBITDA/EBITDAaL up 11% year-over-year due to transformation and cost control.

• 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, supported by EBITDA growth and lower CapEx.

• Workforce reduced by over 600 positions, achieving cost efficiencies and transformation targets ahead of schedule.

• 5G network now covers 99.9% of Sweden’s population and 90% of its landmass, with full rollout completed.

• Recognized by Time magazine as one of the World's Best Companies and by Opensignal for 5G video experience.

Financial highlights

• Q3 2025 end-user service revenue was SEK 5.6 billion (+2% organic YoY); total revenue SEK 7.4 billion (+1% YoY); underlying EBITDA/EBITDAaL margin improved to 47.5% from 43.3% YoY.

• Net profit increased to SEK 1.3 billion (Q3 2024: SEK 1.1 billion); EPS at SEK 1.86.

• CapEx paid (excluding spectrum) decreased to SEK 643 million (Q3 2024: SEK 851 million), partly due to investment deferral to 2026.

• Economic net debt at SEK 22.9 billion, down SEK 3.3 billion from end-2024; leverage at 2.0x underlying EBITDA/EBITDAaL.

• Equity free cash flow per share (rolling 12 months): SEK 9.0.

Outlook and guidance

• 2025 guidance: low single-digit organic end-user service revenue growth (including ~1% Boxer drag), underlying EBITDA/EBITDAaL growth slightly above 10%.

• CapEx-to-sales guidance for 2025 lowered from ~13% to ~12%; midterm range of 10%-12% reiterated for 2026 onward.

• Restructuring costs for 2025 expected at SEK 500 million.

• Dividend policy: at least 80% of equity free cash flow to be distributed as ordinary dividend.

• Q4 to include SEK 370 million payment for Swedish spectrum licenses; 1800 MHz auction payments split between Q1 2026 and Q1 2028.