Tele2 (TEL2) Q4 2024 earnings summary

Executive summary

• Achieved 2024 guidance with 3% end-user service revenue growth and 2% underlying EBITDA/EBITDAAL growth; equity-free cash flow was SEK 4.4 billion, down 7% year-over-year.

• Proposed ordinary dividend of SEK 6.35 per share, representing 100% of 2024 equity-free cash flow.

• Initiated a deep transformation plan, including a 15% workforce reduction and cost optimization, to drive profitability.

• Delivered on key milestones: 5G swap, legacy platform shutdowns, and digital enabler rollouts.

• Net profit for 2024 was SEK 3.9 billion, with EPS of SEK 5.59.

Financial highlights

• Q4 2024 revenue was SEK 7.8 billion (+1% YoY); full-year revenue SEK 29.6 billion (+2% YoY).

• Underlying EBITDA/EBITDAAL for Q4 was SEK 2.7–3.1 billion (+1–1.9% YoY); full-year SEK 10.6–12.1 billion (+2–2.2% YoY), margin 34–41%.

• Q4 equity-free cash flow was SEK 800 million; full-year 2024 was SEK 4.4 billion.

• Leverage ended at 2.5x, at the lower end of the 2.5–3x target range.

• Capex to sales was just below 14% for 2024.

Outlook and guidance

• 2025 guidance: low single-digit organic growth in end-user service revenue, mid- to high single-digit organic growth in underlying EBITDA/EBITDAAL, and capex to sales around 13%.

• Transformation program to drive efficiency and profitability, with workforce reduction executed over 12 months, most impact in H2 2025.

• No intention to trigger a price war in Sweden; focus remains on profitability and efficiency.