Stockholm, Sweden – 

• End-user service revenue of SEK 5.3 billion increased by 4% organically compared to Q2 2022 due to strong performance in the Baltics and Sweden B2B. Total revenue of SEK 7.2 billion increased by 3% organically compared to Q2 2022.
• Underlying EBITDAaL of SEK 2.5 billion remained unchanged organically compared to Q2 2022 as end-user service revenue growth and cost savings related to the Business Transformation Program were offset mainly by inflationary pressures.
• Profit after financial items (EBT) of SEK 1.1 (1.0) billion in Q2 2023.
• Net profit from total operations of SEK 0.9 (0.8) billion and earnings per share of SEK 1.28 (1.23).
• Equity free cash flow of SEK 1.2 (0.8) billion. Over the last twelve months, SEK 4.1 billion was generated, equivalent to SEK 5.9 per share. Our first dividend tranche was largely covered by cash generated in H1 2023.
• Tele2 successfully issued a new EUR 500 million bond in the quarter.
• Full-year 2023 financial guidance updated on the following metrics:

–        Low to mid-single digit growth of end-user service revenue

–        Capex[1] to sales below 14%.

• Mid-term financial ambition updated on the following metrics:

–        Low to mid-single digit growth of end-user service revenue

–        Capex1 to sales of 10% to 14% with 2024 in the upper end of the range, followed by a gradual decline towards the lower end of the range in 2025–2026.

1)      Excluding spectrum and leases.

Comment from Kjell Johnsen, President and Group CEO of Tele2

“As we are passing the half-way point of 2023, I am glad to see that we can uphold the growth momentum at Tele2. During Q2, we have also secured long-term financing at attractive margins that replaces the financing put in place at the time of the Tele2-Com Hem merger in 2018. Coupled with our efficient revenue to cash conversion profile and prudent balance sheet management over time, this means that Tele2 is well prepared to invest in 5G networks and radio spectrum while continuing to pay healthy dividends to our shareholders. Tele2 has also progressed well within our sustainability agenda and was rated No. 1 in the Financial Times overview of climate leaders in Europe.”

Teleconference and webcast
Tele2 will host a teleconference and webcast with presentation at 10:00 CEST (09:00 BST, 04:00 EDT) on Tuesday 18 July 2023. The presentation will be held in English.

Registration for the webcast and a separate registration for the teleconference is available at www.tele2.com.