Sweden's Tele2 Q3 sales rise on service revenue growth, cuts guidance

By Reuters News


Overview

  • Sweden telecom operator's Q3 revenue rose 2% organically, driven by growth across all operations

  • Underlying EBITDAaL up 3% organically, aided by service revenue growth and cost control

  • Company posted record-high equity free cash flow and narrowed full-year EBITDAaL guidance


Outlook

  • Tele2 narrows 2026 underlying EBITDAaL guidance to 4-5% organic growth

  • Company cuts 2026 capex to sales guidance to below 10% from 10-11%

  • Tele2 says it remains disciplined with investments and cost control amid geopolitical impacts


Result Drivers

  • SERVICE REVENUE GROWTH - Co said Q3 end-user service revenue rose 2% organically, driven by growth across all operations

  • COST CONTROL - Co attributed underlying EBITDAaL growth to continued sharp cost control across all operations

  • DISCIPLINED INVESTMENT - CEO said co remains disciplined with investments, prioritising customer experience and scrutinising costs to offset geopolitical impacts


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

SEK 7.60 bln

Q3 EPS

SEK 2.03

Q3 Net Income

SEK 1.40 bln

Q3 Adjusted EBITDA

SEK 3.10 bln

Q3 Free Cash Flow

SEK 2.30 bln

Q3 Pretax Profit

SEK 1.80 bln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 9 "hold" and 4 "sell" or "strong sell"

  • Wall Street's median 12-month price target for Tele2 AB (publ) is SEK170.00, about 7.1% above its October 19 closing price of SEK158.70

  • The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 18 three months ago


Reuters Recommended Reads

  • Oct 19 - Sweden's Truecaller preliminary Q3 net sales rise 3% yr/yr

  • Oct 19 - European telecom groups mull bid for mobile satellite spectrum

  • Oct 19 - Europe EV sales rose 70% in September, almost 30% of market share


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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