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

Tele2 AB (publ)

Tue 06:09

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: ID:nWkr4Xtc8d

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
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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.)