Slide 1: Tele2 Interim Report Second Quarter 2025
Tele2 Interim Report • Tele2 Interim Report Second Quarter 2025 Thursday 17 July “Our organisation’s ability to transform quickly makes us confident enough to raise our guidance.“ Jean Marc Harion, CEO Tele2 2 15 1.6 Tele2’s transformation boosts profitability Financial Highlights • Efficiencies and
Slide 2: 2025: a transformation year for Tele2
• Our objective is to build a faster and more agile Tele2 – less complex, more resilient • We continue to deliver on this objective by embracing Tele2’s original challenger culture: • Simplifying our organisation • Applying stricter prioritisation and cost-control • Focusing on investments that make
Slide 3: Highlights
• 2% organic growth in end-user service revenue • 15% organic growth in underlying EBITDAaL boosted by transformation • Strong equity free cash flow of 1.6bn • New TV service, new stores, new e-shop • Rebrand launch with Frank leading the charge • Europe’s climate leader (FT) and Sweden’s most susta
Slide 4: Transformation delivering results
• Transformation delivering results 4 1) Organic growth rate • 2) Excluding spectrum and leases Sweden Business in Q2 • EUSR growth of 4% • Solid RGU intake in Mobile • Continued growth in Solutions The Group in Q2 • EUSR growth of 2% driven by the Baltics and Sweden Business • Underlying EBITDAaL g
Slide 5: Sweden
• sweden
Slide 6: Sweden Consumer: Connectivity growth offset by Boxer
• Mobile prepaid Fixed broadband EUSR SEKm, YoY growth Digital TV EUSR SEKm, YoY growth Mobile postpaid Sweden Consumer: Connectivity growth offset by Boxer Mobile EUSR SEKm, YoY growth Q2 highlights • Mobile end-user service revenue (EUSR) grew 2% due to 3% postpaid growth partly offset by continue
Slide 7: Sweden Consumer: Volume stabilising in TV
• Sweden Consumer: Volume stabilising in TV RGU base & QoQ (‘000s) Fixed broadband RGU & ASPU Digital TV RGU & ASPU ASPU growth YoY Mobile postpaid RGU & ASPU Q2 highlights • Solid volume growth in Mobile postpaid despite continued slow handset market. ASPU growth of 1% excl. Tele2 fair value accoun
Slide 8: Sweden Business: Strong topline growth
• Fixed Solutions Mobile Mobile ASPU YoY growth (excl. IoT) End-user service revenue SEKm, YoY growth Sweden Business: Strong topline growth Mobile RGU & net intake Base & QoQ excl. IoT (‘000s), YoY growth Q2 highlights • Mobile EUSR growth of 4% driven by IoT and solid RGU growth among large custom
Slide 9: Business Sweden financials: 13% EBITDAaL growth
• Consumer Underlying EBITDAaL & margin SEKm, YoY growth Operating cash flow and cash conversion, LTM, SEKm Business Sweden financials: 13% EBITDAaL growth End-user service revenue SEKm, YoY growth Q2 highlights • EUSR remained stable as Consumer continued to be impacted by the Boxer migration • Str
Slide 10: Baltics
• Baltics
Slide 11: Baltics financials: 20% EBITDAaL growth
• Underlying EBITDAaL & margin SEKm, YoY growth Operating cash flow and cash conversion, LTM, SEKm Latvia Baltics financials: 20% EBITDAaL growth End-user service revenue SEKm, YoY growth Lithuania Q2 highlights • Continued solid EUSR growth of 7% driven by both ASPU and postpaid volume across marke
Slide 12: Baltics operational highlights: Broad-based ASPU growth
• -2% Postpaid RGU base & QoQ (‘000s) Latvia – Mobile RGU & ASPU ASPU growth YoY Baltics operational highlights: Broad-based ASPU growth Estonia – Mobile RGU & ASPU Q2 highlights • Mobile postpaid RGUs increased by a total of 19,000 RGUs in Q2 supported by all markets • Mobile prepaid RGUs declined
Slide 13: Financial overview
• Financial overview
Slide 14: Group results
• Group results Comments • Underlying EBITDA grew mainly driven by end-user service revenue growth in the Baltics and sharp cost control across operations • Items affecting comparability were mainly driven by restructuring costs and pension and inventory adjustments • Net interest and other financia
Slide 15: Group cash flow
• Group cash flow 15 Comments • Capex paid decreased due to lower investments • Changes in working capital were mainly impacted by reduced redundancy provisions related to workforce reductions and a decrease in inventory • Net financial items paid excl. leasing decreased due to timing of coupon paym
Slide 16: Leverage at 2.2x
• Leverage at 2.2x Comments • Economic net debt decreased by SEK 1.5bn compared to year-end 2024 driven by the cash generated in the business, exceeding the payout of the first tranche of the ordinary dividend • Leverage of 2.2x was below the lower end of the target range of 2.5-3.0x • Economic net
Slide 17: 2025 guidance updated
• End-user service revenue1 Underlying EBITDAaL1 Capex to sales2 2025 guidance 1) Organic growth rate • 2) Excluding spectrum and leases 17 2025 guidance updated Low single-digit (unchanged) Slightly above 10% (previously mid- to high single-digit) ~13% (unchanged)
Slide 18: You are No 1
You are Nol Weare Tele2 TELE2