Tele2 — Earnings Release 2024

Jan 29, 2025

2024

Full Year and Fourth Quarter Report

Highlights

• End-user service revenue of SEK 5.5 billion increased by 2% organically compared to Q4 2023 due to growth across operations. Total revenue of SEK 7.8 billion increased by 1% organically compared to Q4 2023.
• Underlying EBITDAaL of SEK 2.7 billion increased by 1% organically compared to Q4 2023 mainly driven by end-user service revenue growth.
• Net profit from total operations of SEK 1.0 (0.9) billion and earnings per share of SEK 1.40 (1.35) in Q4 2024.
• Equity free cash flow of SEK 0.8 (0.5) billion in Q4 2024. Over the last twelve months, SEK 4.4 billion has been generated, equivalent to around SEK 6.3 per share.
• The Board of Directors proposes an ordinary dividend of SEK 6.35 per share, equivalent to 100% of 2024 equity free cash flow.
• Tele2 delivered full year results in accordance with guidance: End-user service revenue growth of 3% organically, underlying EBITDAaL growth of 2% organically, and capex to sales of 14% (excluding spectrum and leases).
• Tele2 has initiated a transformation that aims to improve profitability through stricter prioritisation, reinforced cost consciousness and a simplified organisation, including a workforce reduction of around 15%, subject to union negotiations.
• Full year 2025 guidance: Low single-digit organic growth of end-user service revenue, mid- to high single-digit organic growth of underlying EBITDAaL, and around 13% capex to sales (excluding spectrum and leases).
• Jean Marc Harion joined as President and CEO of Tele2 on 10 November 2024.

Key financial data

SEK million	Oct-Dec 2024	Oct-Dec 2023	Organic %	Full Year 2024	Full Year 2023	Organic %
Continuing operations
End-user service revenue	5,480	5,365	2.1%	21,799	21,130	3.3%
Revenue	7,783	7,684	1.3%	29,583	29,099	1.8%
Operating profit	1,480	1,405		5,817	5,466
Profit after financial items	1,209	1,145		4,749	4,578
Underlying EBITDAaL	2,658	2,624	1.3%	10,612	10,409	2.0%
Capex excluding spectrum and leases	1,152	1,131		4,073	3,941
Operating cash flow	1,506	1,493		6,540	6,468
Equity free cash flow	808	531		4,378	4,720
Total operations
Net profit	971	936		3,870	3,735
Earnings per share (SEK)	1.40	1.35		5.59	5.40
Earnings per share, after dilution (SEK)	1.39	1.34		5.56	5.37
Equity free cash flow	808	531		4,378	4,720
Economic net debt to underlying EBITDAaL				2.5x	2.5x

Reporting period and continuing operations

Figures presented in this report refer to the period October-December 2024 and continuing operations unless otherwise stated. Figures shown in parentheses refer to the comparable periods in 2023. For discontinued operations, refer to Note 8.

Non-IFRS measures

This report contains certain non-IFRS measures which are defined and reconciliated to the closest reconcilable line items in the section Non-IFRS measures. Note that organic growth rates exclude translation effects from currency movements. For further definitions of industry terms and acronyms, please refer to the Investor section at www.tele2.com or see section Other financial metrics.

CEO letter

At the moment we publish our full year 2024 report, I have served as CEO of Tele2 for 2.5 months and have been a member of the Board of Directors for an additional six months. During this period, I have familiarised myself with the specificities of the business and its people, engaged with customers, and deep dived into specific areas. It has been an intense period, and it has provided me with necessary insights and lots of energy that I carry into 2025.

Tele2 leaves behind a year marked by changes, challenges, and achievements. We reached two critical milestones. The first was the major migration from six down to two IT-stacks for our various brands. This will enhance the customer experience, help us better understand our customers' needs and improve our ability to fulfil them.

The second milestone was the completion of our network upgrade, which now enables us to cover 90% of Sweden's population with 5G. Our population coverage for 5G+, i.e. 5G with significantly higher speeds, now stands at an impressive 70%. By the end of 2025, we expect to cover more than 99% of Sweden's population with what we anticipate being Sweden's best 5G network.

Continued growth in 2024

Q4 2024 came with a mixed outcome for Tele2 in Sweden. The slowdown in top-line growth and flattish underlying EBITDAaL have been impacted by the necessary migration of our Boxer customers from the old DTT technology to a more flexible WiFi-based TV-solution with richer content. The negative short-term churn effect will be more than offset on the long-term by the gains in both customer experience and profitability.

Nevertheless, on Tele2 group level, the fourth quarter generated end-user service revenue growth of 2% and underlying EBITDAaL growth of 1%. For the full year, this led to end-user service revenue growth of 3%, underlying EBITDAaL growth of 2%, and capex to sales of 14%. All metrics are in line with the guidance we provided at the beginning of the year. Just as in many previous quarters, our Baltic operations deserve recognition, delivering another period of strong results.

Tele2 delivered Equity Free Cash Flow (EFCF) of SEK 4.4 billion in 2024, which represents a 7% decrease compared to 2023. Consistent with Tele2's financial policy, the Board of Directors proposes to distribute 100% of this 2024 EFCF, corresponding to an ordinary dividend of SEK 6.35 per share.

Rejuvenating Tele2's challenger culture

Our focus is now firmly on the future, particularly 2025. Tele2 is a company unique at its core and a global reference for challenger telcos. On top of that, there is an untapped potential in the company, and we are willing to unleash it.

To begin with, we will reduce complexity within the organisation, inherited from the successive integration of various companies within Tele2. We will select our initiatives and investments carefully to focus on those that make a real difference to our customers.

We have already introduced a significantly reinforced cost discipline. This is not new to Tele2 as cost consciousness has been a central part of the proud heritage we have carried since the company was founded. However, we are now doubling down on this, reintroducing cost consciousness as a core element of our culture.

Optimising the organisation

Our organisation will undergo significant changes during 2025. We will reduce our total workforce by around 15% across Tele2 Group within the coming 12 months, subject to union negotiations. This will be challenging times for all our employees, especially those directly affected by the reorganisation. Both I and all Tele2 leaders carry a great responsibility in the coming months to ensure that this process is as transparent, respectful and supportive as possible.

"Our new operating model and simpler organisation will give us the resilience and flexibility we need to remain in control of our future."

These changes are however necessary to make Tele2 a faster and more agile company, better equipped to swiftly capture market opportunities.

Accelerating underlying EBITDAaL growth in 2025

Our new operating model and simpler organisation will give us the resilience and flexibility we need to remain in control of our future. For 2025, we are guiding for a low single-digit end-user service revenue growth and an underlying EBITDAaL growth in the range of mid- to high single-digit. We expect capex to sales to be around 13% as we finalise the major 5G roll-out and the 2G/3G decommission in 2025.

I am very pleased to see the engagement and commitment from all our colleagues to create a new Tele2, built with our challenger heritage as the foundation. 2025 will be a year full of challenges, just how it is supposed to be when raising ambitions. And I am certain that our new Tele2 will be soon fit to deliver more value to our shareholders.

Jean Marc Harion

President and Group CEO

Financial overview

Analysis of revenue

Continuing operations SEK million	Oct-Dec 2024	Oct-Dec 2023	Organic %	Full Year 2024	Full Year 2023	Organic %
Mobile	1,529	1,516	1%	6,151	5,961	3%
- Postpaid	1,323	1,295	2%	5,303	5,052	5%
- Prepaid	207	221	-6%	848	909	-7%
Fixed	1,454	1,455	0%	5,882	5,776	2%
- Fixed broadband	810	764	6%	3,208	2,982	8%
- Digital TV	620	659	-6%	2,568	2,654	-3%
- Cable & Fiber	422	425	-1%	1,699	1,702	0%
- DTT	198	234	-15%	870	952	-9%
- Fixed telephony & DSL	23	32	-28%	106	139	-24%
Landlord & Other	164	169	-3%	659	663	-1%
Sweden Consumer	3,147	3,140	0%	12,693	12,400	2%
Sweden Business	1,078	1,051	3%	4,226	4,131	2%
Baltics	1,255	1,174	7%	4,880	4,599	7%
End-user service revenue	5,480	5,365	2%	21,799	21,130	3%
Operator revenue	557	592	-6%	2,201	2,304	-4%
Equipment revenue	1,746	1,726	1%	5,582	5,665	-1%
Revenue	7,783	7,684	1%	29,583	29,099	2%

Fourth quarter

End-user service revenue increased by 2% organically driven by growth across operations.

• Sweden Consumer increased marginally as growth in Fixed broadband and Mobile postpaid offset continued decline in legacy services.
• Sweden Business grew by 3% as growth in Mobile and Solutions exceeded continued decline in Fixed.
• Baltics grew by 7% in local currency driven by both ASPU (Average Spend Per User) growth from price adjustments and upselling, and volume growth.

Total revenue increased by 1% organically driven by growth in end-user service revenue and equipment revenue, partly offset by a decline in operator revenue.

Refer to Note 2 and Overview by segment for a breakdown of the segments.

Full year

End-user service revenue increased by 3% organically driven by growth across operations.

• Sweden Consumer increased by 2% as strong growth in Fixed broadband and Mobile postpaid exceeded continued decline in legacy services.
• Sweden Business grew by 2% as growth in Mobile and Solutions exceeded continued decline in Fixed.
• Baltics grew by 7% in local currency driven by both ASPU (Average Spend Per User) growth from price adjustments and upselling, and volume growth.

Total revenue increased by 2% organically driven by growth in end-user service revenue, partly offset by declines in operator and equipment revenue.

Refer to Note 2 and Overview by segment for a breakdown of the segments.

Analysis of income statement

Continuing operations SEK million	Oct-Dec 2024	Oct-Dec 2023	Full Year 2024	Full Year 2023
Revenue	7,783	7,684	29,583	29,099
Underlying EBITDAaL	2,658	2,624	10,612	10,409
Reversal lease depreciation and interest	397	375	1,537	1,475
Underlying EBITDA	3,055	2,999	12,149	11,885
Items affecting comparability	-74	-80	-394	-268
EBITDA	2,982	2,919	11,756	11,616
Depreciation/amortisation	-1,502	-1,515	-5,944	-6,150
- of which amortisation of surplus from acquisitions	-373	-385	-1,491	-1,646
- of which lease depreciation	-359	-332	-1,386	-1,299
- of which other depreciation/amortisation	-770	-798	-3,067	-3,206
Result from shares in associated companies and joint ventures	0	0	5	0
Operating profit	1,480	1,405	5,817	5,466
Net interest and other financial items	-271	-259	-1,068	-888
Income tax	-238	-214	-915	-846
Net profit	971	932	3,834	3,731

Fourth quarter

Underlying EBITDAaL increased by 1% organically, mainly driven by enduser service revenue growth. Our energy costs increased by SEK 6 million compared to Q4 2023.

Items affecting comparability of SEK -74 (-80) million were mainly driven by restructuring costs related to the Strategy Execution Program. Refer to Note 3 for more details.

Full year

Underlying EBITDAaL increased by 2% organically driven by end-user service revenue growth which was partly offset by cost inflation. Our energy costs increased by SEK 42 million compared to full year 2023, mainly explained by the SEK 35 million of electricity support last year.

Items affecting comparability of SEK -394 (-268) million was mainly driven by restructuring costs related to the Strategy Execution Program. Refer to Note 3 for more details.

Depreciation/amortisation of SEK -5,944 (-6,150) million decreased mainly because the surplus value of the TDC acquisition has been fully amortised.

Net interest and other financial items of SEK -1,068 (-888) million increased partly due to higher financing costs for outstanding debt, and partly due to a SEK 77 million other financial gain related to bond repurchase in Q2 2023.

Income tax of SEK -915 (-846) million increased partly due to a pillar 2 top-up tax relating to Lithuania.

Analysis of cash flow statement

SEK million	Oct-Dec 2024	Oct-Dec 2023	Full Year 2024	Full Year 2023
Continuing operations
Underlying EBITDA	3,055	2,999	12,149	11,885
Items affecting comparability	-74	-80	-394	-268
Amortisation of lease liabilities	-399	-266	-1,430	-1,240
Capex paid	-1,041	-1,473	-3,972	-4,053
Changes in working capital	-74	-315	76	85
Net financial items paid	-438	-302	-1,040	-835
Taxes paid	-260	-65	-1,141	-987
Other cash items	37	32	128	133
Equity free cash flow	808	531	4,378	4,720

No equity free cash flow has been reported related to discontinued operations.

Fourth quarter

Full year

Amortisation of lease liabilities of SEK -399 (-266) million increased mainly due to SEK 90 million reclassification to working capital.

Capex paid of SEK -1,041 (-1,473) million decreased mainly due to a spectrum payment in Sweden of approximately SEK 370 million in Q4 2023, and partly due to timing of other capex payments.

Changes in working capital of SEK -74 (-315) million were mainly impacted by a seasonal increase in equipment receivables partly balanced by SEK 90 million reclassification from amortisation of lease liabilities.

Net financial items paid of SEK -438 (-302) million increased mainly due to timing of coupon payments following previous bond refinancing.

Taxes paid of SEK -260 (-65) million increased mainly due to a tax refund of approximately SEK 195 million in Q4 2023.

Items affecting comparability of SEK -394 (-268) million was mainly driven by restructuring costs.

Amortisation of lease liabilities of SEK -1,430 (-1,240) million increased mainly due to our network expansion and SEK 90 million reclassification to working capital in Q4 2024.

Capex paid of SEK -3,972 (-4,053) million decreased due to a spectrum payment in Sweden of approximately SEK 370 million in Q4 2023, partly offset by higher network investments.

Changes in working capital of SEK 76 (85) million were partly impacted by SEK 90 million reclassification from amortisation of lease liabilities in Q4 2024.

Net financial items paid of SEK -1,040 (-835) million increased due to timing of coupon payments following previous bond refinancing, and higher interest rates.

Taxes paid of SEK -1,141 (-987) million increased mainly due to timing of payments, with tax refunds of approximately SEK 195 million in 2023, compared to approximately SEK 95 million in 2024.

Equity free cash flow over the last twelve months amounted to SEK 4.4 billion, equivalent to approximately SEK 6.30 per share.

Analysis of financial position

Total operations SEK million	31 December 2024	31 December 2023
Bonds	23,543	23,113
Commercial papers	1,498	—
Financial institutions and other liabilities	1,684	4,343
Cash and cash equivalents	-317	-1,634
Other adjustments	-195	-174
Economic net debt	26,213	25,648
Lease liabilities	4,121	4,320
Net debt	30,333	29,968
Underlying EBITDAaL, rolling 12 months	10,612	10,409
Economic net debt to Underlying EBITDAaL	2.5x	2.5x
Unutilised overdraft facilities and credit lines	10,324	8,436

Economic net debt of SEK 26.2 (25.6 by the end of 2023) billion increased by SEK 0.6 billion, mainly as the payout of the ordinary dividend exceeded the cash generated in the business.

Economic net debt to underlying EBITDAaL (financial leverage) of 2.5x (2.5x by the end of 2023) was at the lower end of the target range of 2.5-3.0x.

Financial guidance

Financial guidance

Tele2 AB provides the following guidance for continuing operations in constant currencies.

2025 guidance

• Low single-digit organic growth of end-user service revenue
• Mid- to high single-digit organic growth of underlying EBITDAaL
• Around 13% capex to sales (excluding spectrum and leases)

Dividend

The Board of Directors of Tele2 are proposing an ordinary dividend of SEK 6.35 (6.90) per A and B shares to be decided by the 2025 Annual General Meeting on 13 May, 2025. The proposal means that in total SEK 4.4 billion will be distributed to Tele2's shareholders in two tranches, in May and in October.

Guidance

Tele2 provides financial guidance for the inherent year.

The guidance for 2025 is low single-digit organic growth of end-user service revenue, mid- to high single-digit organic growth of underlying EBITDAaL, and around 13% capex to sales (excluding spectrum and leases) as our 5G network investments and intense customer-centric transformation continue at a high pace.

Tele2 confirms growth potential across all segments in 2025. The Swedish operations are expected to continue growing, with Sweden Consumer driven by new offers and propositions, offsetting expected headwind from Boxer's discontinuation of terrestrial TV distribution, and with Sweden Business driven by IoT, SMEs and Large Enterprises. The Baltic operations are expected to continue growing driven by our strong market positions in Lithuania and Latvia alongside continued turnaround in Estonia.

Tele2 has initiated a deep transformation to improve profitability by addressing organisational complexity in Sweden and low profitability in Estonia and some parts of Sweden Business. Radical changes to improve efficiency are already in progress based on two key priorities: Simplify our operating model and organisation, and Rejuvenate Tele2's smart, change and cost-savvy culture. Tele2 has begun extensive group-wide cost-optimisations including an objective to reduce total workforce by around 15% (600-700 full-time equivalents) within the coming 12 months, subject to union negotiations.

The ongoing Strategy Execution Program will continue. While achievements in terms of customer experience and value will continue to be reported as they occur, the specific financial reporting will be discontinued as the program now is part of the new initiatives.

Financial policy

• Tele2 will seek to operate within a range for economic net debt to underlying EBITDAaL of between 2.5-3.0x, and to maintain investment grade credit metrics.
• Tele2's policy will aim to maintain target leverage by distributing capital to shareholders through:
  • An ordinary dividend of at least 80% of equity free cash flow, and,
  • Extraordinary dividends and/or share repurchases, based on remaining equity free cash flow, proceeds from asset sales and re-leveraging of underlying EBITDAaL growth.

Group summary

Continuing operations SEK million	Oct-Dec 2024	Oct-Dec 2023	Organic %	Full Year 2024	Full Year 2023	Organic %
END-USER SERVICE REVENUE
Sweden	4,225	4,191	1%	16,919	16,531	2%
Lithuania	694	654	6%	2,704	2,508	8%
Latvia	375	347	8%	1,463	1,394	5%
Estonia	185	173	7%	714	697	3%
Total	5,480	5,365	2%	21,799	21,130	3%
REVENUE
Sweden	5,942	5,874	1%	22,607	22,300	1%
Lithuania	1,082	1,061	2%	4,086	3,944	4%
Latvia	540	537	0%	2,053	2,024	2%
Estonia	255	251	2%	979	977	1%
Internal sales, elimination	-36	-40	-11%	-143	-146	-2%
Total	7,783	7,684	1%	29,583	29,099	2%
UNDERLYING EBITDAaL
Sweden	1,953	1,958	0%	7,837	7,768	1%
Lithuania	435	409	6%	1,707	1,598	7%
Latvia	218	207	5%	862	834	4%
Estonia	52	50	4%	206	209	-1%
Total	2,658	2,624	1%	10,612	10,409	2%
CAPEX
Sweden	936	927	1%	3,327	3,245	3%
Lithuania	99	97	2%	337	309	9%
Latvia	69	66	4%	239	218	10%
Estonia	48	41	17%	170	169	1%
Capex excluding spectrum and leases	1,152	1,131	2%	4,073	3,941	3%
Spectrum	—	5		—	728
Right-of-use assets (leases)	777	-210		1,370	420
Total	1,929	926		5,442	5,089
of which:
– Network	718	653		2,653	2,501
– IT	220	291		807	913
– Customer equipment	205	170		588	491
– Other	9	17		24	36
Capex excluding spectrum and leases	1,152	1,131		4,073	3,941
Capex to sales (excluding spectrum and leases)	15%	15%		14%	14%

Overview by segment

Sweden

Tele2 Sweden end-user service revenue increased by 1% in the fourth quarter with 3% growth in Business and a marginal growth in Consumer. Growth was negatively affected by differences in the timing of price adjustments compared with last year and increased decline rate in the legacy DTT business ahead of Boxer's discontinuation of terrestrial TV distribution.

At the beginning of the year, we launched our Strategy Execution Program (SEP), which will support our digitalisation journey and create even more focus on value and efficiency, and with a target to reach SEK 600 million of run-rate cost savings.

In Q4 and as part of SEP, the modernisation of Boxer TV services has been finalised. On the network side, our 5G population coverage currently stands above 90% (up from above 80% by Q3) and with 70% population coverage with high-performance 5G+. In January 2025, Opensignal named Tele2 the winner of the 5G Availability award, supporting customer experience and loyalty.

In Q4, SEP reached SEK 250 million of annualised run-rate savings mainly driven by organisational changes and network optimisations. The savings effect on underlying EBITDAaL in Q4 was SEK 60 million YoY. Restructuring costs amounted to SEK 38 million.

Underlying EBITDAaL remained largely unchanged in Q4, whereas Capex excluding spectrum and leases amounted to SEK 936 (927) million.

Financials SEK million	Oct-Dec 2024	Oct-Dec 2023	Organic %	Full Year 2024	Full Year 2023	Organic %
End-user service revenue	4,225	4,191	1%	16,919	16,531	2%
Revenue	5,942	5,874	1%	22,607	22,300	1%
Underlying EBITDA	2,280	2,274		9,123	9,015
Underlying EBITDAaL	1,953	1,958	0%	7,837	7,768	1%
Underlying EBITDAaL margin	33%	33%		35%	35%
Capex
Network	539	506		2,033	1,960
IT	187	250		699	801
Customer equipment	205	166		584	471
Other	6	4		10	13
Capex excluding spectrum and leases	936	927		3,327	3,245
Spectrum	—	2		—	706
Right-of-use assets (leases)	637	-199		1,129	322
Capex	1,573	730		4,456	4,273
Capex to sales (excluding spectrum and leases)	16%	16%		15%	15%

Sweden Consumer

The fourth quarter delivered strong net intake in core services driven by strong consumer demand and competitive offers during this intense commercial period.

Total end-user service revenue was flat in the quarter as solid growth in core connectivity was offset by increased decline in the legacy DTT business.

Mobile postpaid net intake was positive with 50,000 RGUs in the quarter driven by both brands including mobile broadband, partly due to migration away from the terrestrial TV network.

Mobile end-user service revenue grew by 1% as growth in postpaid RGUs more than offset a decline of 6% in prepaid end-user service revenue.

In Fixed broadband, net intake was positive with 3,000 RGUs while enduser service revenue grew by 6% through strong ASPU growth supported by price adjustments and upselling to higher speeds.

Digital TV Cable & Fiber net intake was positive with 7,000 RGUs. Digital TV end-user service revenue declined by 6% driven by the legacy DTT business, which declined by 15% ahead of the end of Boxer's terrestrial TV distribution from January 2025.

	Oct-Dec 2024	Oct-Dec 2023	31 December 2024	31 December 2023	Organic %
RGUs (thousands)	Net intake			RGU base
Mobile	2	-33	2,800	2,843	-2%
– Postpaid	50	27	2,151	2,083	3%
– Prepaid	-48	-60	649	760	-15%
Fixed	-25	-16	1,865	1,958	-5%
– Fixed broadband	3	1	957	969	-1%
– Digital TV	-24	-9	796	857	-7%
– Cable & Fiber	7	0	626	632	-1%
– DTT	-31	-9	170	226	-25%
– Fixed telephony & DSL	-5	-7	112	131	-15%
Total RGUs	-23	-48	4,665	4,801	-3%

	Oct-Dec 2024	Oct-Dec 2023	Organic %	Full Year 2024	Full Year 2023	Organic %
ASPU (SEK)
Mobile	182	177	3%	182	172	6%
– Postpaid	207	209	-1%	209	206	1%
– Prepaid	102	93	10%	100	90	12%
Fixed	258	247	5%	256	243	5%
– Fixed broadband	283	263	8%	278	259	7%
– Digital TV	256	255	0%	259	253	2%
– Cable & Fiber	226	224	1%	225	224	0%
– DTT	357	339	5%	366	330	11%
– Fixed telephony & DSL	68	80	-15%	72	80	-10%
Revenue (SEK million)
Mobile	1,529	1,516	1%	6,151	5,961	3%
– Postpaid	1,323	1,295	2%	5,303	5,052	5%
– Prepaid	207	221	-6%	848	909	-7%
Fixed	1,454	1,455	0%	5,882	5,776	2%
– Fixed broadband	810	764	6%	3,208	2,982	8%
– Digital TV	620	659	-6%	2,568	2,654	-3%
– Cable & Fiber	422	425	-1%	1,699	1,702	0%
– DTT	198	234	-15%	870	952	-9%
– Fixed telephony & DSL	23	32	-28%	106	139	-24%
Landlord & Other	164	169	-3%	659	663	-1%
End-user service revenue	3,147	3,140	0%	12,693	12,400	2%
Operator revenue	196	186		772	734
Equipment revenue	709	703		2,062	2,057
Internal sales	0	0		0	0
Revenue	4,051	4,029	1%	15,526	15,191	2%

Sweden Business and Wholesale

In Sweden Business, end-user service revenue growth of 3% in the quarter reflects a slight sequential improvement as compared to Q3. While the Swedish business sector continues to be affected by economic headwinds, we remain optimistic about gradual improvements during this year.

According to SKI (Swedish Quality Index), Tele2 Sweden, for the second consecutive year, has the most satisfied business customers among major mobile operators, hence another great confirmation of our efforts to be the number one in customer experience.

Mobile net intake was positive with 12,000 RGUs in the quarter. Mobile enduser service revenue grew by 4% driven by IoT and by RGUs mainly in the SME and Public segments.

In Fixed, following the copper shutdown in Q2 2024, the underlying enduser service revenue trend continues to gradually improve.

Equipment revenue increased compared to Q4 last year due to a few larger handset deals. However, we continue to see caution around equipment purchases due to the economic situation.

Sweden Wholesale revenue decreased by 6% during the quarter due to declining sales within A2P (application to person).

Sweden Business

	Oct-Dec 2024	Oct-Dec 2023	31 December 2024	31 December 2023	Organic %
RGUs (thousands)	Net intake			RGU base
Mobile (excluding IoT)
– Postpaid	12	3	1,089	1,055	3%

	Oct-Dec	Oct-Dec	Organic	Full Year	Full Year	Organic
	2024	2023	%	2024	2023	%
ASPU (SEK)
Mobile (excluding IoT)
– Postpaid	144	146	-1%	144	143	0%
Revenue (SEK million)
Mobile	600	578	4%	2,359	2,236	6%
Fixed	177	181	-2%	705	759	-7%
Solutions	301	292	3%	1,162	1,135	2%
End-user service revenue	1,078	1,051	3%	4,226	4,131	2%
Operator revenue	24	25		96	95
Equipment revenue	516	479		1,716	1,774
Internal sales	1	1		4	4
Revenue	1,620	1,556	4%	6,041	6,004	1%

Sweden Wholesale

SEK million	Oct-Dec 2024	Oct-Dec 2023	Organic %	Full Year 2024	Full Year 2023	Organic %
Operator revenue	270	288		1,034	1,096
Equipment revenue	0	0		0	1
Internal sales	1	1		4	5
Revenue	271	289	-6%	1,039	1,103	-6%

Baltics

Lithuania

The market environment remained highly competitive in Q4 with focus on Christmas campaigns and special offers. All mobile operators also prepared for the prepaid registration requirement from January 2025 by adjusting their offers. We continued our focus on 5G network expansion, quality improvements and strengthening our market position.

Mobile ASPU increased by 2% in local currency mainly driven by successful execution of our more-for-more strategy.

End-user service revenue grew by 6% in local currency driven by both ASPU and RGUs.

Underlying EBITDAaL grew by 6% in local currency driven by end-user service revenue growth and successful cost management initiatives.

Net intake in mobile postpaid was negative in the quarter with 1,000 RGUs including a clean-up of 16,000 RGUs. Mobile prepaid was negative with 61,000 RGUs mainly driven by churn of inactive users, overall prepaid market decline and migration to postpaid.

	Oct-Dec 2024	Oct-Dec 2023	31 December 2024	31 December 2023	Organic %
RGUs (thousands)	Net intake			RGU base
Mobile	-63	-18	2,062	2,006	3%
– Postpaid	-1	8	1,410	1,352	4%
– Prepaid	-61	-26	653	653	0%

	Oct-Dec 2024	Oct-Dec 2023	Organic %	Full Year 2024	Full Year 2023	Organic %
ASPU (EUR)
Mobile	9.5	9.4	2%	9.6	9.0	7%
– Postpaid	11.8	11.5	3%	11.7	11.0	7%
– Prepaid	4.9	5.2	-5%	5.3	5.1	3%
Revenue (SEK million)
Mobile	689	651	6%	2,687	2,495	8%
– Postpaid	572	532	8%	2,212	2,021	10%
– Prepaid	117	119	-2%	475	473	1%
Fixed	5	3	50%	17	13	30%
End-user service revenue	694	654	6%	2,704	2,508	8%
Operator revenue	28	45		133	176
Equipment revenue	340	339		1,172	1,179
Internal sales	19	23		76	81
Revenue	1,082	1,061	2%	4,086	3,944	4%
Underlying EBITDA	465	432		1,815	1,688
Underlying EBITDAaL	435	409	6%	1,707	1,598	7%
Underlying EBITDAaL margin	40%	39%		42%	41%
Capex	163	68		543	322
Capex excluding spectrum and leases	99	97		337	309
Capex to sales (excluding spectrum and leases)	9%	9%		8%	8%

Latvia

The Latvian market environment continued to be challenging in the quarter. Although consumer sentiment is improving, private consumption is still weak as households tend to keep their savings that have decreased due to inflation. While competition remained intense, Tele2 achieved good results also in Q4. We also continued our gradual 3G decommissioning in order to reallocate spectrum to 5G and 4G.

Net intake in the quarter was positive in mobile postpaid with 5,000 RGUs whereas mobile prepaid was negative with 7,000 RGUs.

End-user service revenue grew by 8% in local currency mainly driven by ASPU following price adjustments earlier in the year.

Underlying EBITDAaL grew by 5% in local currency driven by end-user service revenue growth.

	Oct-Dec 2024	Oct-Dec 2023	31 December 2024	31 December 2023	Organic %
RGUs (thousands)	Net intake			RGU base
Mobile	-3	21	1,063	1,057	1%
– Postpaid	5	6	847	821	3%
– Prepaid	-7	15	216	235	-8%

	Oct-Dec 2024	Oct-Dec 2023	Organic %	Full Year 2024	Full Year 2023	Organic %
ASPU (EUR)
Mobile	10.2	9.6	6%	10.0	9.7	3%
– Postpaid	11.9	11.2	6%	11.7	11.3	4%
– Prepaid	3.6	3.8	-4%	3.5	4.0	-12%
Revenue (SEK million)
Mobile	374	345	8%	1,452	1,387	5%
– Postpaid	347	316	10%	1,343	1,261	7%
– Prepaid	27	30	-7%	109	126	-13%
Fixed	1	2	-39%	11	7	54%
End-user service revenue	375	347	8%	1,463	1,394	5%
Operator revenue	21	30		91	119
Equipment revenue	133	149		457	469
Internal sales	11	11		43	42
Revenue	540	537	0%	2,053	2,024	2%
Underlying EBITDA	235	223		927	892
Underlying EBITDAaL	218	207	5%	862	834	4%
Underlying EBITDAaL margin	40%	39%		42%	41%
Capex	89	85		305	279
Capex excluding spectrum and leases	69	66		239	218
Capex to sales (excluding spectrum and leases)	13%	12%		12%	11%

Estonia

In Q4, Tele2 delivered solid growth both in end-user service revenue and in underlying EBITDAaL, following our pricing activities in Q3. We still remain as the price leader with a strong brand, which continues to be helpful as competitors seek to win-back customers they lost during previous quarters.

Net intake in the quarter was negative both in mobile postpaid with 2,000 RGUs and in mobile prepaid with 2,000 RGUs.

End-user service revenue increased by 7% in local currency, clearly faster than previous quarters and mostly driven by ASPU.

Underlying EBITDAaL increased by 4% in local currency mostly driven by end-user service revenue growth, partly offset by increased marketing costs and temporarily increased organisational costs.

	Oct-Dec 2024	Oct-Dec 2023	31 December 2024	31 December 2023	Organic %
RGUs (thousands)	Net intake			RGU base
Mobile	-3	-13	461	455	1%
– Postpaid	-2	-1	418	412	2%
– Prepaid	-2	-12	43	44	-1%

	Oct-Dec 2024	Oct-Dec 2023	Organic %	Full Year 2024	Full Year 2023	Organic %
ASPU (EUR)
Mobile	10.7	9.8	9%	10.4	10.1	3%
– Postpaid	11.5	10.5	10%	11.1	10.8	3%
– Prepaid	3.1	4.4	-31%	3.1	4.0	-23%
Revenue (SEK million)
Mobile	171	156	9%	652	632	3%
– Postpaid	167	149	12%	634	606	5%
– Prepaid	5	8	-39%	18	26	-30%
Fixed	14	16	-14%	62	64	-4%
End-user service revenue	185	173	7%	714	697	3%
Operator revenue	19	19	1%	77	82	-6%
Equipment revenue	47	56	-15%	173	185	-6%
Internal sales	4	4	-5%	16	13	20%
Revenue	255	251	2%	979	977	1%
Underlying EBITDA	74	70		285	290
Underlying EBITDAaL	52	50	4%	206	209	-1%
Underlying EBITDAaL margin	20%	20%		21%	21%
Capex	105	43		138	214
Capex excluding spectrum and leases	48	41		170	169
Capex to sales (excluding spectrum and leases)	19%	16%		17%	17%

Other items

Risks and uncertainty factors

The present challenging macroeconomic and geopolitical environment also affects Tele2 Group and Tele2 AB, primarily through inflationary pressure and a somewhat cautious customer sentiment. Tele2 has a resilient business model, offering services that are highly valued and prioritised by our customers. In addition, we have a solid balance sheet. We are convinced that we are able to navigate through these uncertain times. Please refer to the section Enterprise risk management on p. 25–27 and Note 2 on p. 113–117 in Tele2's Annual and Sustainability Report 2023 for more information about Tele2's risk exposure and risk management.

Events during the quarter

14 October. Jean Marc Harion appointed as the new CEO of Tele2

Tele2's Board of Directors appointed Jean Marc Harion as President and CEO, effective from 10 November. Jean Marc Harion was previously the CEO of Polish telecom operator Play and serves on Tele2's Board of Directors.

25 October. Tele2 Nomination Committee Convened

In accordance with Tele2's procedures for the Nomination Committee as decided by the 2018 Annual General Meeting, the committee consists of members appointed by the three largest shareholders in terms of voting interest in Tele2 who have wished to appoint a committee member. Nicolas Didio, representing Freya Investissement, is the convener of the committee.

20 November. Experience Love in 3D – Tele2 Introduces 5G Dating

Tele2 takes dating to the next level with 5G and hologram technology to combat the loneliness of the holiday season. On December 7, Tele2 5G Dating was launched in shopping area Gallerian in Stockholm – a new type of dating experience where you can meet in 3D without being in the same place.

21 November. Tele2 and Cisco Strengthen Partnership to Deliver Enhanced Global IoT Connectivity Management Solutions for Businesses across Industries

Tele2 and Cisco are expanding their partnership to deliver advanced IoT solutions to businesses across industries. Tele2 and Cisco will work together to bring new capabilities to 2CONTROL, the Connectivity Management Platform (CMP) powered by Cisco IoT Control Center. This will create new offers on a global scale to support the diverse demands of new and existing IoT customers in areas such as massive IoT, automotive, and utilities.

21 November. Tele2 announced changes to the Group Leadership Team

Tele2 announced that Yogesh Malik, Executive Vice President and CTIO, stepped down from his position effective from 21 November.

27 December. Tele2 and Telenor Now Cover Over 90% of Sweden's Population with 5G and 70% with High-Performance 5G+ through the joint venture Net4Mobility

5G+ offers speeds between 200 and 800 Mbit/s and ideal for data-intensive services such as live streaming and video calls.

Events after the end of the fourth quarter 2024

8 January. Tele2 announced changes to the Group Leadership Team Tele2 announced that Jenny Garneij, Executive Vice President People and Change, left her position effective from 8 January.

13 January. Tele2 announced changes to the Group Leadership Team

Tele2 announced that Kim Hagberg, Executive Vice President, Chief Operations, left her position effective from 13 January.

Financial calendar

Tele2 financial calendar for 2025 has been established.

3 April	Annual and Sustainability report 2024
23 April	Interim report Q1 2025
13 May	Annual General Meeting 2025
17 July	Half year report 2025
21 October	Interim report Q3 2025

Auditors' review

This report has not been subject to a review by Tele2's auditors.

Stockholm, 29 January 2025 Tele2 AB (publ)

Jean Marc Harion President and Group CEO

Q4 2024 PRESENTATION

Tele2 will host a teleconference and webcast with presentation at 09:00 CET (08:00 BT, 03:00 EDT) on Wednesday, 29 January 2025. The presentation will be held in English.

Registration for the webcast and a separate registration for the teleconference will be available at www.tele2.com/investors.

This information is information that Tele2 AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, at 07:00 am CET on Wednesday 29, January 2025.

Contacts Contents

Fredrik Hallstan

Head of External Communications, Phone: +46 (0) 761 15 38 30

Stefan Billing

Head of Investor Relations, Phone: +46 (0) 701 66 33 10

Tele2 AB

Company registration nr: 556410-8917 P.O. Box 62 SE–164 94 Kista, Stockholms län Sweden Tel + 46 (0) 8 5620 0060 www.tele2.com

Visit our website: www.tele2.com

Consolidated income statement Consolidated comprehensive income Condensed consolidated balance sheet Condensed consolidated cash flow statement Consolidated statement of changes in equity Parent company Notes Non-IFRS measures Other financial metrics

Consolidated income statement

SEK million	Note	Oct-Dec	Oct-Dec	Full Year	Full Year
		2024	2023	2024	2023
Revenue	2	7,783	7,684	29,583	29,099
Cost of services provided and equipment sold	3	-4,504	-4,630	-16,854	-17,288
Gross profit		3,279	3,054	12,729	11,811
Selling expenses	3	-1,301	-1,159	-4,868	-4,447
Administrative expenses	3	-548	-564	-2,280	-2,176
Result from shares in associated companies and joint ventures		0	0	5	0
Other operating income	3	73	89	309	387
Other operating expenses	3	-23	-16	-78	-109
Operating profit	3	1,480	1,405	5,817	5,466
Interest income		16	29	115	98
Interest expenses		-294	-290	-1,197	-1,061
Other financial items		7	1	15	76
Profit after financial items		1,209	1,145	4,749	4,578
Income tax		-238	-214	-915	-846
Net profit, continuing operations		971	932	3,834	3,731
Net profit discontinued operations	8	0	4	36	4
Net profit, total operations		971	936	3,870	3,735
Continuing operations
Attributable to:
Equity holders of the parent company		971	932	3,834	3,731
Net profit, continuing operations		971	932	3,834	3,731
Earnings per share (SEK)	6	1.40	1.35	5.54	5.40
Earnings per share, after dilution (SEK)	6	1.39	1.34	5.50	5.36
Total operations
Attributable to:
Equity holders of the parent company		971	936	3,870	3,735
Net profit, total operations		971	936	3,870	3,735
Earnings per share (SEK)	6	1.40	1.35	5.59	5.40
Earnings per share, after dilution (SEK)	6	1.39	1.34	5.56	5.37

Consolidated comprehensive income

SEK million Note	Oct-Dec 2024	Oct-Dec 2023	Full Year 2024	Full Year 2023
NET PROFIT	971	936	3,870	3,735
Components not to be reclassified to net profit
Pensions, actuarial gains/losses	50	-126	43	5
Pensions, actuarial gains/losses, tax effect	-10	26	-9	-1
Components not to be reclassified to net profit/loss	40	-100	34	4
Components that may be reclassified to net profit
Translation differences in foreign operations	94	-208	197	-6
Reversed cumulative translation differences from divested companies	—	—	—	-1
Translation differences in associated companies	0	-1	1	0
Translation differences	94	-209	199	-7
Hedge of net investments in foreign operations	-77	129	-120	10
Tax effect on above	16	-27	25	-2
Hedge of net investments	-61	102	-95	8
Profit/loss arising on changes in fair value of hedging instruments	4	-61	-77	-91
Reclassified cumulative profit/loss to income statement	11	14	44	39
Tax effect on cash flow hedges	-3	10	7	11
Cash flow hedges	12	-37	-26	-42
Components that may be reclassified to net profit/loss	45	-143	77	-40
OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX	84	-244	111	-36
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	1,055	692	3,981	3,698
Attributable to:
Equity holders of the parent company	1,055	692	3,981	3,698
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	1,055	692	3,981	3,698

Condensed consolidated balance sheet

SEK million	Note	31 December	31 December
		2024	2023
ASSETS
Goodwill		29,988	29,898
Other intangible assets		11,135	12,683
Intangible assets		41,123	42,580
Property, plant & equipment		10,117	8,986
Right-of-use assets		4,071	4,216
Tangible assets		14,188	13,202
Shares in associated companies and joint ventures		4	6
Other financial assets	4	1,085	1,044
Capitalised contract costs		887	810
Deferred tax assets		128	104
Non-current assets		57,414	57,746
Inventories		838	824
Trade receivables		2,020	2,111
Other current receivables		3,778	3,660
Current investments		74	84
Cash and cash equivalents	5	317	1,634
Current assets		7,028	8,313
TOTAL ASSETS		64,442	66,059
EQUITY AND LIABILITIES
Attributable to equity holders of the parent company		22,097	22,780
Equity	6	22,097	22,780
Liabilities to financial institutions and similar liabilities	4	21,435	22,171
Lease liability		2,829	3,111
Provisions		958	1,045
Other interest-bearing liabilities		158	162
Interest-bearing liabilities		25,380	26,488
Deferred tax liability		3,531	3,597
Other non-interest-bearing liabilities		354	340
Non-interest-bearing liabilities		3,886	3,938
Non-current liabilities		29,266	30,426
Liabilities to financial institutions and similar liabilities	4	4,823	4,148
Lease liability		1,291	1,209
Provisions		96	46
Other interest-bearing liabilities		309	976
Interest-bearing liabilities		6,519	6,379
Trade payables		2,158	2,233
Other current non-interest-bearing liabilities		4,395	4,156
Non-interest-bearing liabilities		6,553	6,388
Current liabilities		13,073	12,767
Liabilities directly associated with assets classified as held for sale	8	7	86
TOTAL EQUITY AND LIABILITIES		64,442	66,059

Condensed consolidated cash flow statement

Total operations SEK million	Note	Oct-Dec 2024	Oct-Dec 2023	Full Year 2024	Full Year 2023
Operating activities
Net profit		971	936	3,870	3,735
Adjustments for non-cash items in net profit		1,350	1,648	5,831	6,193
Changes in working capital		-74	-315	76	85
Cash flow from operating activities		2,247	2,269	9,778	10,013
Investing activities
Additions to intangible and tangible assets		-1,041	-1,473	-3,972	-4,053
Acquisition and sale of shares and participations	7	—	34	-38	54
Other financial assets, lending		48	88	10	72
Cash flow from investing activities		-993	-1,351	-3,999	-3,926
Financing activities
Proceeds from loans		69	-282	3,650	3,082
Repayments of loans		-495	-467	-5,973	-3,969
Dividend paid	6	-2,389	-2,352	-4,777	-4,702
Cash flow from financing activities		-2,814	-3,101	-7,100	-5,589
Net change in cash and cash equivalents		-1,560	-2,183	-1,322	497
Cash and cash equivalents at beginning of period		1,871	3,825	1,634	1,116
Exchange rate differences in cash and cash equivalents		6	-8	5	21
Cash and cash equivalents at end of the period	5	317	1,634	317	1,634

Consolidated statements of changes in equity

Total operations SEK million	Note	31 December 2024
		Attributable to equity holders of the parent company
		Share capital	Other paid-in capital	Hedge reserve	Translation reserve	Retained earnings	Total equity
Equity at 1 January		870	27,378	-411	582	-5,640	22,780
Net profit		—	—	—	—	3,870	3,870
Other comprehensive income for the period, net of tax		—	—	-122	199	34	111
Total comprehensive income for the period		—	—	-122	199	3,904	3,981
Other changes in equity
Share-based payments	6	—	—	—	—	106	106
Share-based payments, tax effect	6	—	—	—	—	7	7
Dividend	6	—	—	—	—	-4,777	-4,777
Equity at end of the period		870	27,378	-533	781	-6,400	22,097

Total operations SEK million	Note	31 December 2023
		Attributable to equity holders of the parent company
		Share capital	Other paid-in capital	Hedge reserve	Translation reserve	Retained earnings	Total equity
Equity at 1 January		869	27,378	-378	589	-4,775	23,683
Net profit		—	—	—	—	3,735	3,735
Other comprehensive income for the period, net of tax		—	—	-33	-7	4	-36
Total comprehensive income for the period		—	—	-33	-7	3,739	3,698
Other changes in equity
Share-based payments	6	—	—	—	—	97	97
Share-based payments, tax effect	6	—	—	—	—	3	3
New share issues	6	2	—	—	—	—	2
Repurchase of own shares	6	—	—	—	—	-2	-2
Dividend	6	—	—	—	—	-4,702	-4,702
Equity at end of the period		870	27,378	-411	582	-5,640	22,780

Parent company

Condensed income statement

SEK million	Oct-Dec 2024	Oct-Dec 2023	Full Year 2024	Full Year 2023
Revenue	11	12	60	51
Administrative expenses	-34	-27	-129	-105
Other operating income	0	0	0	0
Other operating expenses	0	0	0	0
Operating loss	-23	-15	-68	-54
Dividend from group company	3,800	—	3,800	4,800
Interest income	95	88	310	296
Interest expense	-272	-294	-1,166	-902
Other financial items	-79	127	-127	81
Profit/loss after financial items	3,521	-94	2,749	4,222
Appropriations	2,806	1,476	2,806	1,476
Tax on profit/loss	-519	-287	-396	-188
Net profit/loss	5,807	1,095	5,158	5,510

Condensed balance sheet

SEK million	Note	31 December 2024	31 December 2023
ASSETS
Financial assets		71,266	75,458
Non-current assets		71,266	75,458
Current receivables		3,582	1,969
Current investments		74	84
Cash and cash equivalents		0	0
Current assets		3,655	2,053
TOTAL ASSETS		74,921	77,511
EQUITY AND LIABILITIES
Restricted equity	6	5,856	5,856
Unrestricted equity	6	34,252	33,789
Equity		40,107	39,645
Untaxed reserves		1,510	915
Interest-bearing liabilities	4	26,552	27,283
Non-current liabilities		26,552	27,283
Interest-bearing liabilities	4	6,384	9,435
Non-interest-bearing liabilities		368	233
Current liabilities		6,752	9,668
TOTAL EQUITY AND LIABILITIES		74,921	77,511

Notes

NOTE 1 ACCOUNTING PRINCIPLES AND DEFINITIONS

The interim financial information for the Group for the twelve month period ended 31 December 2024 has been prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting as issued by the International Accounting Standards Board (IASB) and the Swedish Annual Accounts Act. The interim financial information for the parent company has also been prepared in accordance with the Swedish Annual Accounts Act and as well as RFR 2 Reporting for legal entities and other statements issued by the Swedish Corporate Reporting Board. In all respects other than those described below, Tele2 has presented the financial statements for the period ended 31 December 2024 in accordance with the accounting policies and principles applied in the Annual and Sustainability Report 2023. The description of these principles and definitions are found in Note 1 in the Annual and Sustainability Report 2023. Disclosures as required by IAS 34 p. 16 A are presented both in the financial statements and notes as well as in other parts of the interim report.

The amendments to IFRS Accounting Standards applicable from 1 January 2024 have no effects to Tele2's financial reports for the twelve month period ended 31 December 2024.

NOTE 2 REVENUE AND SEGMENTS

Revenue by segment

Continuing operations SEK million	Oct-Dec 2024	Oct-Dec 2023	Full Year 2024	Full Year 2023
Sweden	5,942	5,874	22,607	22,300
Lithuania	1,082	1,061	4,086	3,944
Latvia	540	537	2,053	2,024
Estonia	255	251	979	977
Total including internal sales	7,819	7,724	29,726	29,244
Internal sales, elimination	-36	-40	-143	-146
TOTAL	7,783	7,684	29,583	29,099

Internal sales

Continuing operations SEK million	Oct-Dec 2024	Oct-Dec 2023	Full Year 2024	Full Year 2023
Sweden	2	2	8	9
Lithuania	19	23	76	81
Latvia	11	11	43	42
Estonia	4	4	16	13
TOTAL	36	40	143	146

Revenue split by category

Continuing operations SEK million	Oct-Dec 2024	Oct-Dec 2023	Full Year 2024	Full Year 2023
Sweden Consumer
End-user service revenue	3,147	3,140	12,693	12,400
Operator revenue	196	186	772	734
Equipment revenue	709	703	2,062	2,057
Internal sales	0	0	0	0
Total	4,051	4,029	15,526	15,191
Sweden Business
End-user service revenue	1,078	1,051	4,226	4,131
Operator revenue	24	25	96	95
Equipment revenue	516	479	1,716	1,774
Internal sales	1	1	4	4
Total	1,620	1,556	6,041	6,004
Sweden Wholesale
Operator revenue	270	288	1,034	1,096
Equipment revenue	0	0	0	1
Internal sales	1	1	4	5
Total	271	289	1,039	1,103
Lithuania
End-user service revenue	694	654	2,704	2,508
Operator revenue	28	45	133	176
Equipment revenue	340	339	1,172	1,179
Internal sales	19	23	76	81
Total	1,082	1,061	4,086	3,944
Latvia
End-user service revenue	375	347	1,463	1,394
Operator revenue	21	30	91	119
Equipment revenue	133	149	457	469
Internal sales	11	11	43	42
Total	540	537	2,053	2,024
Estonia
End-user service revenue	185	173	714	697
Operator revenue	19	19	77	82
Equipment revenue	47	56	173	185
Internal sales	4	4	16	13
Total	255	251	979	977
Internal sales, elimination	-36	-40	-143	-146
CONTINUING OPERATIONS
End-user service revenue	5,480	5,365	21,799	21,130
Operator revenue	557	592	2,201	2,304
Equipment revenue	1,746	1,726	5,582	5,665
TOTAL	7,783	7,684	29,583	29,099

Underlying EBITDAaL

Continuing operations SEK million	Oct-Dec 2024	Oct-Dec 2023	Full Year 2024	Full Year 2023
Sweden	1,953	1,958	7,837	7,768
Lithuania	435	409	1,707	1,598
Latvia	218	207	862	834
Estonia	52	50	206	209
TOTAL	2,658	2,624	10,612	10,409

NOTE 3 PROFIT AFTER FINANCIAL ITEMS

Reconciling items to reported profit after financial items

Continuing operations SEK million	Oct-Dec 2024	Oct-Dec 2023	Full Year 2024	Full Year 2023
Underlying EBITDAaL	2,658	2,624	10,612	10,409
Reversal lease depreciation and interest	397	375	1,537	1,475
Underlying EBITDA	3,055	2,999	12,149	11,885
Restructuring costs	-38	-35	-323	-146
Disposal of non-current assets	-10	-4	-22	-36
Other items affecting comparability	-26	-41	-48	-86
Items affecting comparability	-74	-80	-394	-268
EBITDA	2,982	2,919	11,756	11,616
Depreciation/amortisation	-1,502	-1,515	-5,944	-6,150
Result from shares in associated companies and joint ventures	0	0	5	0
Operating profit	1,480	1,405	5,817	5,466
Net interest and other financial items	-271	-259	-1,068	-888
Profit after financial items	1,209	1,146	4,749	4,578

Restructuring costs

Continuing operations SEK million	Oct-Dec 2024	Oct-Dec 2023	Full Year 2024	Full Year 2023
Redundancy costs	-4	-6	-168	-19
Other employee and consultancy costs	0	-3	-7	-19
Exit of contracts and other costs	-33	-26	-148	-107
Restructuring costs	-38	-35	-323	-146
Reported as:
– Cost of services provided	-6	-12	-40	-68
– Selling expenses	-26	-9	-136	-25
– Administrative expenses	-5	-14	-147	-54

The restructuring costs in 2024 are related to the ongoing Strategy Execution Program in Sweden.

Disposal of non-current assets

Continuing operations SEK million	Oct-Dec 2024	Oct-Dec 2023	Full Year 2024	Full Year 2023
Closure of projects and systems	—	—	—	-13
Network equipment scrapping	-10	-5	-25	-29
Other	1	1	3	6
Disposal of non-current assets1)	-10	-4	-22	-36

1) Reported as other operating income and other operating expenses.

Other items affecting comparability

Continuing operations SEK million	Oct-Dec 2024	Oct-Dec 2023	Full Year 2024	Full Year 2023
Legal disputes and settlements	17	-2	32	-13
Legacy receivable reconciliation	-19	-21	-34	-41
Inventory adjustment	-28	-7	-28	-7
Legacy prepaid voucher value adjustment	—	2	—	2
Legacy insurance costs	—	—	-5	-16
Legacy pension adjustment	—	-10	—	-10
Quality assurance	-1	—	-21	—
Other	4	-2	7	0
Total	-26	-41	-48	-86
Reported as:
– Cost of services provided	26	-24	3	-24
– Selling expenses	-47	-6	-41	-40
– Administrative expenses	-5	-11	-10	-23

In Q4 2024, a positive non-recurring item of SEK 17 million was recognized, related to settlements with suppliers and partners. This was offset by a negative adjustment of SEK 19 million related to reconciliation of old receivables following a billing system migration. In addition, a negative adjustment of legacy inventories of SEK 28 million was recorded in the quarter.

NOTE 4 FINANCIAL ASSETS AND LIABILITIES

Financing

SEK million	31 December 2024	31 December 2023
Bonds SEK	8,794	6,784
Bonds EUR	14,749	16,329
Commercial papers	1,498	—
Financial institutions	1,217	3,206
Total liabilities to financial institutions	26,258	26,319

Average maturity and average interest rate (including derivatives) for outstanding debt to financial institutions at 31 December 2024 amounted to 3.2 years and 3.1 percent, respectively.

As of the date of this report, Tele2 has an unutilised credit facility with a syndicate of eight banks maturing in December 2029.

In March 2024, Tele2 issued bonds of SEK 2.0 billion. The issuance was divided in a floating rate tranche of SEK 1.6 billion with a coupon of STIBOR 3m +0.72 percentage points and a fixed rate tranche of SEK 400 million with a coupon of 3.75 percent. The maturity is 2.6 years. The bonds have been issued within Tele2's EMTN program and are listed for trading on the Luxembourg Stock Exchange.

In June 2024, Tele2 secured a new loan from the European Investment Bank of EUR 140 million to support the roll-out of the 5G network and upgrade of the 4G network in Sweden. As of 31 December, the loan remains unutilised.

Financial instruments – classification and fair values

Tele2's financial assets consist mainly of receivables from end customers, other operators and resellers as well as cash and cash equivalents. Tele2's financial liabilities consist mainly of loans, bonds, lease liabilities and trade payables. For the category "Liabilities to financial institutions" the reported value amounted on 31 December 2024 to SEK 26,258 (31 December 2023: 26,319) million and the fair value to SEK 26,013 (31 December 2023: 25,930) million.

Tele2 has derivative instruments included in assets of SEK 119 (31 December 2023: 89) million and in liabilities of SEK 172 (31 December 2023: 802) million measured at fair value (Level 2).

NOTE 5 RELATED PARTIES

Tele2's share of cash and cash equivalents in joint operations (Svenska UMTS-nät AB and Net4Mobility HB, Sweden, including subsidiaries) for which Tele2 has limited disposal rights was included in the Group's cash and cash equivalents and amounted at 31 December 2024 to SEK 200 (31 December 2023: 74) million. Other transactions with joint operations and other related parties mainly consists of the same items as prior year end and are presented in Note 34 of the Annual and Sustainability Report 2023.

NOTE 6 EQUITY, NUMBER OF SHARES AND INCENTIVE PROGRAMS

Number of shares

	31 December 2024	31 December 2023
Total number of shares	696,221,597	696,221,597
Number of treasury shares	-3,831,770	-4,588,520
Number of outstanding shares	692,389,827	691,633,077
Number of outstanding shares, weighted average	692,171,210	691,399,936
Number of shares after dilution	696,797,768	696,244,505
Number of shares after dilution, weighted average	696,552,645	695,634,439

In Q2 2024, 756,750 share rights attached to LTI 2021 were exchanged for shares (see additional information below). Changes in shares during previous year are stated in Note 23 in the Annual and Sustainability Report 2023.

Outstanding share right programs

	31 December 2024	31 December 2023
LTI 2024	1,480,100	—
LTI 2023	1,409,183	1,624,035
LTI 2022	1,518,658	1,509,122
LTI 2021	—	1,478,271
Total outstanding share rights	4,407,941	4,611,428

The outstanding long-term incentive programs (LTI 2022, LTI 2023 and LTI 2024) are based on a similar structure, but with updated performance parameters for the LTI 2024 program, where the Tele2 Absolute TSR performance measurement was removed, and replaced with a Sustainability measurement (CDP Score). The performance measurements Cashflow and Relative TSR were kept. Additional information about the LTI programs 2022 and 2023 regarding the purpose of the program, performance parameters, measurement periods, conditions and requirements are stated in Note 31 of the 2023 Annual and Sustainability Report and information regarding the LTI 2024 program is stated in the Notice to the Annual General Meeting 2024. During the twelve months in 2024, the total cost including social security costs for all the programs amounted to SEK 149 (115) million.

LTI 2024

At the Annual General Meeting held on 15 May 2024, the shareholders approved a performance-based incentive program (LTI 2024) for senior executives and other key employees in the Tele2 Group. In order to participate in the program, participants must own Tele2 Class B shares, which give the participants retention and performance rights. Subject to fulfilment of certain performance based conditions during the periods 1 January 2024 – 31 December 2026 (the "Cash flow and CDP Score Measurement Period") and 1 April 2024 – 31 March 2027 (the "TSR Measurement Period") and the participant maintaining the invested shares at the release of the interim report for January – March 2027 and, with certain exceptions, as well maintaining the employment within the Tele2 Group, each right entitles the participant to receive one Tele2 share free of charge (subject to income taxation).

Total costs for outstanding rights in the incentive program are expensed over the three year vesting period. These costs are expected to amount to SEK 103 million, of which social security costs amount to SEK 31 million. To ensure the delivery of Class B shares under the program, the Annual General Meeting decided to authorise the Board of Directors to resolve on a directed share issue of a maximum of 1,960,000 Class C shares and subsequently to repurchase the Class C shares. The Board of Directors has not yet used its mandate.

LTI 2021

The exercise of the share rights in LTI 2021 was conditional upon the fulfilment of certain performance-based conditions. The TSR criterias (serie A and B in below table) were measured from 1 April 2021 until 31 March 2024, while operating cashflow (serie C in below table) was measured from 1 January 2021 to 31 December 2023. The outcome of these performance conditions was in accordance with below and 756,750 share rights have been exchanged for shares in Tele2 during Q2 2024. The weighted average share price for share rights for the LTI 2021 at date of exercise amounted to SEK 98.12.

	Serie Performance based conditions	Minimum hurdle	Stretch hur dles (100%)	Vesting at minimum	Target fulfillment	Allotment
A	Total Shareholder Return (TSR) – Tele2	>=0%	N/A	100%	3.0%	100%
B	Tele2s Relative Total Shareholder Return (TSR) compared to a peer group	Median of peer group	>=10%	50%	-18.5%	0%
C	Operating cash flow vs .target	>=90%	>=110%	30%	103.6%	77.4%

Dividend

To the Annual General Meeting (AGM) on May 13, 2025 Tele2's Board of Directors proposes based on the financial year 2024 an ordinary dividend of SEK 6.35 per share (SEK 4.4 billion), to be paid in two tranches in May and October 2025.

The Annual General Meeting (AGM) held on 15 May 2024, resolved on an ordinary dividend of SEK 4,777 million, or SEK 6.90 per A and B share, to be paid in two tranches of SEK 3.45 each. The first tranche of the dividend, amounting to SEK 2,389 million, was distributed to the shareholders on 22 May 2024. The second tranche of SEK 2,389 million was distributed on 18 October 2024.

NOTE 7 BUSINESS ACQUISITIONS AND DIVESTMENTS

Acquisitions and divestments of shares and participations affecting cash flow were as follows:

SEK million	Oct-Dec 2024	Oct-Dec 2023	Full Year 2024	Full Year 2023
Divestments
Tele2 Germany	—	34	—	58
Tele2 Croatia	—	-1	-43	-4
T-Mobile Netherlands	—	—	5	—
Total sale of shares and participations	—	34	-38	54
TOTAL CASH FLOW EFFECT	—	34	-38	54

During 2024 Tele2 paid SEK 43 million to settle a dispute related to the divested operations in Croatia. Tele2 also received an additional payment of SEK 5 million related to the divestment on T-Mobile Netherlands, that was completed in 2022.

The proceeds from Tele2 Germany in 2023 refer to the earnout component.

See further information about Croatia and Germany in Note 8 discontinued operations.

Information on acquisitions and divestments made in 2023 is provided in the Annual and Sustainability Report 2023, Note 14 and Note 33.

NOTE 8 DISCONTINUED OPERATIONS

Tele2 Croatia

In March 2020 Tele2 completed the divestment of its Croatian business to United Group.

For the full year of 2024, the positive impact of SEK 10 million mainly refers to a provision release, following a settlement of a dispute. See also note 7.

Tele2 Germany

In December 2020 Tele2 completed the divestment of its German business to the Tele2 Germany management. The purchase price included an earnout component, dependent upon the financial performance of the business until the end of 2024.

Final payment was made in Q4 2023, as the maximum accumulated proceeds of SEK 205 million was reached.

Tele2 Netherlands

In January 2019 Tele2 and Deutsche Telekom completed the combination of Tele2 Netherlands and T-Mobile Netherlands. Tele2 Netherlands was sold for SEK 1.9 billion and 25 percent share in the combined company.

For the full year of 2024, the positive impact of SEK 26 million was related to a provision release referring to a resolved dispute.

Income statement

All discontinued operations are included below. Tele2 Germany and Tele2 Croatia were divested in 2020, while Tele2 Netherlands was divested in 2019.

Further information about effects in the income statement under discontinued operations in 2023 is provided in Note 33 of the Annual and Sustainability Report 2023.

Discontinued operations SEK million	Oct-Dec 2024	Oct-Dec 2023	Full Year 2024	Full Year 2023
Profit/loss on disposal of operation including sales costs and cumulative
exchange rate gain	0	4	36	4
– of which Germany	—	1	—	4
– of which Croatia	0	2	10	0
– of which Netherlands	—	1	26	0
NET PROFIT/LOSS	0	4	36	4
Attributable to:
Equity holders of the parent company	0	4	36	4
NET PROFIT/LOSS	0	4	36	4
Earnings per share (SEK)	0.00	0.01	0.05	0.01
Earnings per share, after dilution (SEK)	0.00	0.01	0.05	0.01

Balance sheet

Liabilities associated with assets held for sale as of 31 December 2024 refer to provisions related to the divested operation in Croatia.

Discontinued operations SEK million	31 December 2024	31 December 2023
LIABILITIES
Interest-bearing liabilities	—	26
Non-current liabilities	—	26
Interest-bearing liabilities	3	57
Non-interest-bearing liabilities	4	4
Current liabilities	7	61
Liabilities directly associated with assets
classified as held for sale	7	86

Cash flow statement

Discontinued operations SEK million	Oct-Dec 2024	Oct-Dec 2023	Full Year 2024	Full Year 2023
Cash flow from investing activities	—	34	-43	54
Net change in cash and cash equivalents	—	34	-43	54

Non-IFRS measures

This report contains certain financial measures that are not defined by IFRS but are used by Tele2 to assess the financial performance of the business. These measures are included in the report as they are considered important supplementary measures of operating performance and liquidity. They should not be considered a substitute to Tele2's financial statements prepared in accordance with IFRS. Tele2's definitions and explanations of these measures are described below, but other companies may calculate non-IFRS measures differently and these measures are therefore not always comparable to similar measures used by other companies.

EBITDA

Tele2 considers EBITDA to be a relevant measure to present profitability aligned with industry standard.

EBITDA: Operating profit/loss before depreciation/amortisation, impairment as well as results from shares in associated companies and joint ventures.

Underlying EBITDA

Tele2 considers underlying EBITDA to be a relevant measure to present in order to illustrate the profitability of the underlying business, and as these are used by management to assess the performance of the business.

Underlying EBITDA: EBITDA excluding items affecting comparability.

Items affecting comparability: Disposals of non-current assets and transactions from strategic decisions, such as capital gains and losses from sales of operations, acquisition costs, integration costs due to acquisition or merger, restructuring programs from reorganisations as well as other items that affect comparability.

Underlying EBITDAaL and underlying EBITDAaL margin

Tele2 considers underlying EBITDAaL and the related margin to be relevant measures of the business performance since underlying EBITDAaL includes the cost of leased assets (depreciation and interest), which is not included in underlying EBITDA according to IFRS 16.

Underlying EBITDAaL: Underlying EBITDA as well as lease depreciation and lease interest costs according to IFRS 16.

Underlying EBITDAaL margin: Underlying EBITDAaL in relation to revenue excluding items affecting comparability.

Continuing operations SEK million	Oct-Dec 2024	Oct-Dec 2023	Full Year 2024	Full Year 2023
Operating profit	1,480	1,405	5,817	5,466
Reversal:
Result from shares in associated companies and joint ventures	0	0	-5	0
Depreciation and amortisation	1,502	1,515	5,944	6,150
EBITDA	2,982	2,919	11,756	11,616
Reversal, items affecting comparability:
Restructuring costs	38	35	323	146
Disposal of non-current assets	10	4	22	36
Other items affecting comparability	26	41	48	86
Total items affecting comparability	74	80	394	268
Underlying EBITDA	3,055	2,999	12,149	11,885
Lease depreciation	-359	-332	-1,386	-1,299
Lease interest costs	-38	-43	-151	-176
Underlying EBITDAaL	2,658	2,624	10,612	10,409
Revenue	7,783	7,684	29,583	29,099
Revenue excluding items affecting comparability	7,783	7,684	29,583	29,099
Underlying EBITDAaL margin	34%	34%	36%	36%

Non-IFRS measures – Capex paid and capex

Tele2 considers capex paid relevant to present as it provides an indication of how much the company invests organically in intangible and tangible assets to maintain and expand its business. Tele2 believes that it is relevant to present capex to provide a view on how much Tele2 invests organically in intangible and tangible assets as well as in right-of-use assets (lease) to maintain and grow its business that is not dependent on the timing of cash payments.

Capex paid: Cash paid for the additions to intangible and tangible assets net of cash proceeds from sales of intangible and tangible assets.

Capex: Additions to intangible assets, tangible assets and right-of-use assets that are capitalised on the balance sheet.

SEK million	Oct-Dec 2024	Oct-Dec 2023	Full Year 2024	Full Year 2023
CONTINUING OPERATIONS
Additions to intangible and tangible assets	-1,042	-1,474	-3,975	-4,059
Sale of intangible and tangible assets	1	1	3	7
Capex paid	-1,041	-1,473	-3,972	-4,053
This period's unpaid capex and reversal of paid capex from previous period	-111	338	-98	-609
Reversal received payment of sold intangible and tangible assets	-1	-1	-3	-7
Capex intangible and tangible assets	-1,152	-1,136	-4,073	-4,669
Reversal spectrum	—	5	—	728
Capex excluding spectrum and leases	-1,152	-1,131	-4,073	-3,941
Spectrum	—	-5	—	-728
Additions to right-of-use assets	-777	210	-1,370	-420
Capex	-1,929	-926	-5,442	-5,089

No capex has been reported related to discontinued operations.

Non-IFRS measures – Operating cash flow

Tele2 considers operating cash flow a relevant measure to present as it gives an indication of the profitability of the underlying business while also taking into account the investments needed to maintain and grow the business.

Operating cash flow: Underlying EBITDAaL less capex excluding spectrum and leases.

Continuing operations	Oct-Dec	Oct-Dec	Full Year	Full Year
SEK million	2024	2023	2024	2023
Underlying EBITDAaL	2,658	2,624	10,612	10,409
Capex excluding spectrum and leases	-1,152	-1,131	-4,073	-3,941
Operating cash flow	1,506	1,493	6,540	6,468

Non-IFRS measures – Equity free cash flow

Tele2 considers equity free cash flow to be relevant to present as it provides a view of funds generated from operating activities that also includes investments in intangible and tangible assets. Management believes that equity free cash flow is meaningful to investors because it is the measure of the Group's funds available for acquisition related payments, dividends to shareholders, share repurchases and debt repayment.

Equity free cash flow: Cash flow from operating activities less capex paid and amortisation of lease liabilities.

SEK million	Oct-Dec 2024	Oct-Dec 2023	Full Year 2024	Full Year 2023
CONTINUING OPERATIONS
Cash flow from operating activities	2,248	2,269	9,779	10,013
Capex paid	-1,041	-1,473	-3,972	-4,053
Amortisation of lease liabilities	-399	-266	-1,430	-1,240
Equity free cash flow	808	531	4,378	4,720
eFCF per share (SEK)	1.17	0.77	6.32	6.83
eFCF per share after dilution (SEK)	1.16	0.76	6.28	6.79
NUMBER OF SHARES
Number of outstanding shares, weighted average	692,171,210	691,399,936	692,171,210	691,399,936
Number of shares after dilution, weighted average	696,552,645	695,634,439	696,552,645	695,634,439

No equity free cash flow has been reported related to discontinued operations.

Non-IFRS measures – Net debt and economic net debt

Tele2 believes that net debt is relevant to present as it is useful to illustrate the indebtedness, financial flexibility, and capital structure. Furthermore, economic net debt is considered relevant as it excludes lease liabilities, and thereby consistently can be put in relation to underlying EBITDAaL when measuring financial leverage.

Net debt: Interest-bearing non-current and current liabilities excluding provisions, less cash and cash equivalents, current investments, restricted cash and derivative assets.

Economic net debt: Net debt excluding lease liabilities.

Total operations SEK million	31 December 2024	31 December 2023
Interest-bearing non-current liabilities	25,380	26,488
Interest-bearing current liabilities	6,519	6,379
Reversal provisions	-1,054	-1,091
Cash & cash equivalents, current investments and restricted funds	-392	-1,720
Derivative assets	-119	-89
Net debt	30,333	29,968
Reversal:
Lease liabilities	-4,121	-4,320
Economic net debt	26,213	25,648

Organic

Tele2 believes that organic growth rates are relevant to present as they exclude effects from currency movements but include effects from divestments and acquisitions as if these occurred on the first day of each reporting period and are therefore providing an indication of the underlying performance.

Organic growth rates: Calculated at constant currency, meaning that comparative figures have been recalculated using the currency rates for the current period, but including effects from divestments and acquisitions as if these occurred on the first day of each reporting period.

Reconciliation of figures is presented in an Excel document (Q4-2024 financial-and-operational-data) on Tele2's website www.tele2.com.

Other financial metrics

Certain other financial metrics that are presented in this report are defined below. It is the view of Tele2 that these metrics provide valuable additional information to investors and other readers of this report.

ASPU

Average monthly spending per user for the referenced period. ASPU is calculated by dividing the monthly end-user service revenue by the average number of RGUs for the same period. The average number of RGUs is calculated as the number of RGUs on the first day in the period plus the number of RGUs on the last day of the respective period, divided by two.

Average interest rate

Annualised interest expense on loans (excluding penalty interest etc.) in relation to average interest-bearing liabilities excluding provisions, lease liabilities, debt related to equipment financing, balanced bank fees as well as adjusted for borrowings and amortisations during the period.

Capex to sales

Capex excluding spectrum and leases divided by revenue.

Earnings per share

Profit/loss for the period attributable to the parent company shareholders in relation to the weighted average number of shares outstanding during the fiscal year.

Economic net debt / Underlying EBITDAaL (financial leverage)

Economic net debt divided by underlying EBITDAaL (rolling twelve months) for all operations owned and controlled by Tele2 at the end of each reporting period.

End-user service revenue

Revenue from end-users excluding equipment revenue. End-user service revenue is presented to provide a view of revenue attached to the customers usage of services provided by the company.

Operating profit/loss (EBIT)

Revenue less operating expenses.

RGU

Revenue generating units, which refer to each service subscribed to by a unique customer. A unique customer who has several services is counted as several RGUs but one unique customer.

TSR

Total shareholder return including change in the share price and reinvested dividends.

Visit our website: www.tele2.com