Tele2 reported revenue of SEK 7.246 billion in Q1 2026, reflecting organic growth of about 3 percent, while end-user service revenue reached SEK 5.527 billion.
EBITDAaL of Tele2 rose 11 percent to SEK 2.924 billion, highlighting strong operational performance supported by cost control and revenue expansion.
Net profit of SEK 6.4 billion increased by SEK 5.5 billion compared to Q1 2025, mainly due to a capital gain of SEK 5.1 billion related to the Baltic tower company.
Tele2 operates across Sweden and the Baltics, including Lithuania, Latvia, and Estonia. Sweden remains the largest market with revenue of SEK 5.581 billion, followed by Lithuania at SEK 977 million, Latvia at SEK 489 million, and Estonia at SEK 236 million.
Business units include Sweden Consumer, Sweden Business, and Baltic operations. Sweden Consumer generated SEK 3.162 billion in end-user service revenue, while Sweden Business contributed SEK 1.113 billion, driven by mobile and IoT growth.
Average revenue per user improved across segments. Mobile ARPU reached SEK 188, while fixed ARPU stood at SEK 268, reflecting pricing actions and upselling strategies.
Total subscriber base declined slightly to 4.54 million RGUs, with mobile subscriptions at 2.73 million and fixed broadband at 951,000.
Mobile revenue grew modestly by 2 percent to SEK 1.547 billion, driven by a 3 percent rise in postpaid revenue, which offset a 10 percent decline in prepaid. Fixed revenue also increased 2 percent to SEK 1.460 billion, supported by growth in digital TV (up 4 percent) and fixed broadband (up 1 percent), while legacy fixed telephony and DSL declined sharply by 24 percent.
Among business segments, Sweden Consumer posted 1 percent growth to SEK 3.162 billion, while Sweden Business outperformed with 5 percent growth to SEK 1.113 billion. The Baltics delivered the strongest regional growth at 7 percent.
Operator revenue rose 4 percent, while equipment revenue declined 3 percent, partially offsetting overall gains. Overall, Tele2’s Q1 performance reflects balanced growth, with strength in postpaid mobile, business services, and Baltic markets.
Tele2 continued 5G expansion, supported by the Baltic tower transaction generating SEK 4.7 billion, enabling further rollout. Broadband performance improved with upgraded networks delivering speeds up to 2.5 Gbps in Sweden.
Capex excluding spectrum and leases declined to SEK 587 million, with lower 5G rollout pace and reduced workforce contributing to savings. Capex intensity stood at about 8 percent of sales. Operating expenses were tightly controlled, driving EBITDA growth and efficiency gains.
Capex reached SEK 442 million in Sweden, SEK 63 million in Lithuania, SEK 43 million in Latvia and SEK 40 million in Estonia.
Cost optimization and restructuring efforts supported savings, reflected in improved margins and reduced cost base, positioning Tele2 for sustained profitability.
AI focus
Tele2 is accelerating the use of artificial intelligence across customer experience, operations, and analytics, positioning AI as a core enabler of efficiency and service quality improvements, Tele2 CEO Jean Marc said.
AI is being deployed to enhance customer experience by improving service personalization and enabling proactive issue resolution. The company has strengthened its analytical capabilities, using AI to better understand customer needs and behavior, which supports targeted offerings and upselling strategies.
A key operational benefit comes from automation, where AI helps anticipate and resolve technical issues remotely, often before customers notice them. This reduces customer frustration and lowers pressure on customer service teams, improving overall efficiency.
Tele2 is also leveraging AI to optimize internal processes, contributing to cost control and operational discipline. These efficiencies support EBITDA growth and align with the company’s broader strategy of maintaining a lean cost base while investing in service quality.
Additionally, AI is integrated into retail and digital channels, helping Tele2 deliver the right product at the right time through the right channel. Combined with physical store expansion, AI-driven insights are improving sales effectiveness and customer engagement.
BABURAJAN KIZHAKEDATH
