CEO letter - Q4 2025

Meeting and beating guidance in a game-changing year

When we entered 2025, we gave ourselves very ambitious targets which required a fundamental transformation of Tele2. We raised the bar for our financial performance – profitability in particular – and at the same time made a decision to return to our true chal‑ lenger roots: a lean and agile operating model, strict cost control, and a renewed set of values based on simplicity and action.

Transformations of this scale can take years. What stands out to me is how quickly my colleagues across the company embraced the change and executed such a deep transformation, including a reduction of our workforce by 15%. The mindset, speed, and adaptability shown throughout 2025 were exactly what we needed and hoped for.

We meet or beat all our guidance KPIs for 2025. We reached a spectacular full year underlying EBITDAaL growth of 11.4%, driven by disciplined cost control and end-user service revenue (EUSR) growth of 2.3%. Our capex-to-sales of 10.8% came in below our initial expectations, thanks to sharper strategic prioritisation of investments. As a result, we delivered an Equity Free Cash Flow of 6.2 billion SEK, 42% higher than in 2024. In a global telecom context, Tele2’s financial performance in 2025 clearly stands out.

Based on our strong financial performance, the Board of Directors proposes a dividend of 10.50 SEK per share to be distributed in 2026, equivalent to 118% of our 2025 eFCF.

An eventful fourth quarter with strong commercial progress across all products

The final quarter of the year was intense. The shutdown of our Swedish 2G and 3G networks in early December marked an import‑ ant milestone in Tele2’s history, allowing us to fully focus on further improving our 5G network. During the quarter, an independent study confirmed Tele2 as operating Sweden’s fastest 5G network, now covering 99% of the population. The successful spectrum auction in November was another key step, with the acquisition of spectrum in the 1,800 MHz band further strengthening our network position.

The Baltics and Sweden business delivered impressive EUSR growth throughout the year, with that growth being significantly more profitable. After absorbing the impact of the necessary decommissioning of Boxer’s terrestrial TV services, Sweden Consumer gradually returned to growth and delivered its strongest EUSR growth of the year in the fourth quarter.

In Q4, we successfully leveraged our strengthened brand and new offers to drive significant traffic to our own channels. Our con‑ tinued investments in stores and online capabilities have started paying off and we are confident in the efficiency of our operating model. These results contributed to Group Q4 EUSR growth of 3.7% and underlying EBITDAaL growth of 13.2%.

For the fourth consecutive year, we received in Q4 an “A” – the high‑ est possible rating – from CDP in the climate category. We were also ranked number one in Europe and second globally by Global Child Forum for our work on integrating child rights into the business.

These recognitions reflect how deeply our ambitious sustainability agenda is embedded in the way we operate, and they build on other notable acknowledgements from earlier in 2025 – including being named Europe’s #1 Climate Leader by the Financial Times and Sweden’s most sustainable company by Time Magazine.

Built to seize growth opportunities

Looking ahead, 2026 will be a different – but equally demanding – year. With most of the fundamentals now in place and a new prof‑ itability standard established, we increase our focus on long-term and short-term growth opportunities.

Cross-selling and increasing our customers’ loyalty remain top priorities. In 2025 we gradually built a much stronger understand‑ ing of when and how our customers want us to engage with them, supported by increasingly sophisticated data analytics and AI tools. There is still room for improvement, but our ambition is clear: to have the most loyal customers in the industry.

A key enabler will be continuing to increase the share of sales through our own channels, both for our Consumer and Business customers – an area where we made strong progress in Q4. Our store footprint will continue to grow in 2026, including expansion into geographic areas in Sweden where we have historically been underrepresented. With our world-class 5G network now covering 99% of the population, geographic blind spots are no longer justified.

In 2025, we re-energised the Tele2 brand with the return of our iconic advertising character, ‘Frank’. In 2026, we will give the Comviq brand a new energy boost to ensure continued relevance – particularly among younger audiences.

At the same time, we will continue optimising our operating and business models to drive efficiency. Automation efforts and AI use accelerated in 2025 and will continue at pace in 2026. And, needless to say, our disciplined approach to cost control remains unchanged.

2026 guidance

In 2026, we guide for organic low single-digit end-user service reve‑ nue growth, and organic underlying EBITDAaL growth in the range of low to mid-single-digit. We expect capex to sales to be 10–11%.

As we enter 2026, Tele2 is now leaner and faster than ever. With all our core services performing well, I can confidently say that the company is back to the future.

My colleagues and I are very much looking forward to address the opportunities and challenges we have ahead of us this year, and we are deeply grateful for our customers’ loyalty and the support from our shareholders.