CEO letter - Q3 2025

In the third quarter we continued to execute on our transformation to make Tele2 a faster, leaner and stronger company. The improved cost base – supported by solid top line growth in the Baltics and Sweden Business – is reflected in the strong Underlying EBITDAaL growth of 11% in the third quarter.

Our strict approach to cost and priorities implemented end of last year is now deeply integrated into the company culture and our daily operations. That means we are now able to gradually increase our efforts to optimise our teams, automate our processes and launch growth initiatives within the business units, ensuring that we invest where it matters most to our customers.

We are particularly determined to reduce the artificial churn that we observe in the consumer market. Today’s distribution structure encourages customers in Sweden to switch operators frequently. While this frictionless process has clear advantages, it also opens the door to questionable sales practices and increases the risk of impulsive switches – as reflected in the Consumer Agency’s criti- cism of telemarketing. We firmly believe that our continued invest- ments in our own channels – stores, online and phone – will deepen relationships and strengthen customer satisfaction and loyalty. As part of this strategy, we decided during the quarter to end our partnership with one of the major third-party retailers in Sweden, a clear signal of the direction we are taking. The same approach is applied in B2B, where we have already made a significant step forward by reducing the number of sales partners by around 60%. This allows us to focus on fewer, higher-quality partners with much closer follow-up

Our ability to drive traffic to our own channels has improved with the re-birth of the advertising icon Frank the sheep. In a market crowded with sameness, Frank has brought back Tele2’s distinctive challenger personality, improving our cut through in the adver- tising noise significantly. Combined with strong demand for the redesigned iPhone, this new positioning led to our most successful iPhone launch since 2016 in terms of first-week sales volumes, with the share of sales through our own channels continuing to grow steadily.

Ultimately, quality and value for money are the key drivers of loyalty. That’s why the third quarter marked such an important milestone when we enabled 5G across our entire Swedish network, now reaching 99.9% of the population. With the shutdown of our 2G/3G network coming in December, we can focus all efforts on one efficient network and continue to realise our ambition of building Sweden’s best 5G network. Independent benchmark firm Open Signal has already recognised this progress, naming Tele2 the global leader in 5G video experience.

Improved network coverage is a long-term priority also in the Baltics, and our decision to create the first pan-Baltic TowerCo is a way to support that expansion while unlocking value from our infrastructure. The transaction is subject to customary regulatory approvals and is expected to be finalised in early 2026. In the meantime, the Baltic operations continue to impress and delivered yet another strong quarter on both top and bottom line, and I am particularly glad to see that Tele2 Estonia pursues the steady recov- ery, delivering a whopping 53% uEBITDAaL growth in Q3.

On a less encouraging note, The Swedish Post and Telecom Authority (PTS) has once again been forced to delay the anticipated regulation of villa fiber connections, a regulation that we fully support. The repeated delays affect millions of Swedish consumers and their ability to benefit from a fair competition and choose their preferred broadband supplier as well as their preferred broadband service. Tele2 is proud to have played a central role in breaking the telecom monopoly of the 1990s, but today we see new local monopolies emerging and working hard to preserve the status quo in fibre connections. Consumers would benefit from Sweden implementing the same model as two thirds of EU’s member states already have, and Tele2 and iTux are more than ready to support the implementation of that change.

Lastly, we are very proud to have been named one of the World’s Best Companies by Time, based on employee satisfaction, growth and sustainability transparency. This honour is a testament to the hard work my colleagues have put in during the first three quarters, and it gives us even more energy as we head into the final stretch of the year.