Tele2 Misses Q3 Earnings and Lowers Capital Expenditure Outlook

Tele2 reported third-quarter core earnings of kr3.15 billion, falling slightly short of the kr3.19 billion analyst consensus. Despite the earnings miss, the Swedish telecom operator achieved record equity free cash flow of kr2.30 billion for the quarter and kr6.73 billion over the trailing 12 months.

Revenue for the period reached kr7.60 billion, representing a 2% organic increase fueled by operator and end-user service revenue. Performance varied by region, with Baltic operations seeing a 6% rise in end-user service revenue. Conversely, the Swedish consumer segment struggled, recording a 3% drop in fixed broadband revenue and a net loss of 6,000 subscriptions.

The company reduced its capital expenditure outlook to below 10% of sales, down from a previous range of 10% to 11%. This adjustment follows a slower 5G rollout, a reduced workforce, and delayed hardware supply within Sweden. Tele2 also narrowed its full-year organic growth guidance for underlying EBITDAaL to between 4% and 5%.