Tele2 has reduced capital expenditure during the second quarter of 2026 while continuing to invest in strategic 5G infrastructure, spectrum assets, broadband expansion and sovereign cloud capabilities. The operator maintained a disciplined investment strategy focused on generating long-term shareholder value, improving customer experience and strengthening network leadership across Sweden and the Baltics.
Tele2’s capex excluding spectrum and leases declined 26 percent to SEK 665 million in Q2 2026 from SEK 899 million a year earlier. During the first half of 2026, capex excluding spectrum and leases fell to SEK 1.253 billion, compared with SEK 1.722 billion in the same period of 2025.
The company also reduced its capex paid excluding spectrum to SEK 789 million during the quarter from SEK 823 million, while first-half capex paid decreased to SEK 1.513 billion from SEK 1.655 billion.
Total capital expenditure, including leases and spectrum, reached SEK 1.021 billion during the quarter compared with SEK 1.614 billion a year earlier. For the first six months, total capex increased to SEK 4.672 billion from SEK 3.106 billion, primarily reflecting higher right-of-use assets related to lease accounting. Right-of-use assets totaled SEK 331 million in Q2 compared with SEK 715 million last year, while first-half right-of-use assets increased significantly to SEK 3.394 billion from SEK 1.384 billion following the Baltic tower transaction.
Tele2 also continued investing in spectrum assets. Spectrum capex totaled SEK 25 million during the second quarter, covering newly acquired 1,500 MHz and 2,100 MHz spectrum in Lithuania. During the first half, spectrum payments reached SEK 144 million, including the first installment for Swedish spectrum acquired in 2025 and payments for the Lithuanian spectrum acquired during Q2.
The company’s capex-to-sales ratio improved to 9 percent in Q2 from 12 percent a year earlier, while the rolling 12-month capex-to-sales ratio also declined to 9 percent from 13 percent. Tele2 reiterated its full-year 2026 guidance of maintaining capex between 10 percent and 11 percent of sales, excluding spectrum and leases, highlighting its continued focus on disciplined investment and capital efficiency.
By geography, Sweden accounted for the largest share of investment with SEK 511 million in capex excluding spectrum and leases during Q2, down from SEK 733 million, while first-half spending declined to SEK 953 million from SEK 1.430 billion as 5G deployment slowed.
Lithuania increased capex excluding spectrum and leases to SEK 64 million from SEK 60 million in the quarter and to SEK 126 million from SEK 113 million in the first half. Latvia invested SEK 44 million compared with SEK 59 million a year earlier, while Estonia maintained investment at SEK 47 million, up slightly from SEK 47 million, with first-half spending rising to SEK 86 million from SEK 70 million.
Tele2 attributed the lower investment level primarily to a reduced pace of 5G rollout, delayed hardware deliveries, reduced workforce, and payment timing. Despite lower capex, the company continued expanding the availability of 2.5 Gbps broadband services across Sweden, opened three new retail stores, strengthened its 5G network in Sweden and the Baltics, secured additional Lithuanian spectrum, and launched a sovereign cloud platform with Scaleway to support enterprise cloud and AI workloads.
BABURAJAN KIZHAKEDATH
