Tele2 AB (publ)

Solid operating momentum (but some “reported” softness): Q3 delivered 2% organic growth in end-user service revenue and 3% organic underlying EBITDAaL growth (from a strong prior-year base). Reported growth was flat due to the Baltic Tower transaction burden (impact expected ~EUR 35m / ~SEK 100m in the quarter from March 2026). Core drivers: revenue contribution + “sharp cost control.”

Cash generation and leverage remained strong; dividends already paid: Equity free cash flow (Q3) reached a record SEK 2.3bn (+30% YoY). Over last 12 months: SEK 6.7bn (~SEK 9.7/share). Economic net debt ended at SEK 17.5bn, down SEK 6.8bn vs end-2025; leverage ~1.5x underlying EBITDAaL (investment-grade). Final dividend tranche was paid last week (first tranche in May). Pro forma leverage after final ordinary dividend: ~1.8x.

Updated full-year 2026 guidance (slight EBITDA growth slowdown implied): Management maintained organic end-user service revenue growth at low single-digit. Guidance update narrowed organic underlying EBITDAaL growth to 4–5% (from previously low-to-mid single digit) and lowered CapEx to sales to <10% (from 10–11%). Drivers/expectations cited: challenging macro + intense competition and a tougher Q4 comp (very strong Q4 prior year). CapEx guidance assumes continued discipline and network/capability shift after the “big 5G build-out phase.”