Interim Report Second Quarter 2022: Tele2

Stockholm – Tele2 AB (“Tele2”) (Nasdaq Stockholm: TEL2 A and TEL2 B) today announces its consolidated results for the second quarter 2022.

CEO Comment
"Having reached the half-way point of 2022, we are pleased to see our efforts paying off and that we are on a steady course to deliver on our 2022 guidance. Tele2 is at heart a growth-oriented company and it means a lot to us when we see that all major business lines are getting into growth territory. Shareholders have received a total of SEK 16.40 in dividends during Q2 after the successful closing of our sale in the Netherlands and payment of the first tranche of our ordinary dividend, further showing Tele2’s commitment to our shareholder remuneration policy. The operating environment is challenging for many industries, with high energy prices and increasing inflation. We are partly hedged against some of these threats and are benefitting from the improvements we are making to our business. Our ambition to continue delivering in accordance with our mid-term guidance is therefore fully realistic and with the initiatives we already have set in motion, we consider ourselves well underway to realize the ambition we have set forth for this year," says Kjell Johnsen, President and CEO of Tele2.

Highlights

• End-user service revenue of SEK 5.0 billion increased by 3% compared to Q2 2021 on an organic basis due to strong performance in the Baltics, Sweden B2B and slight tailwind from roaming.
• Total revenue of SEK 6.8 billion increased by 3% compared to Q2 2021 on an organic basis.
• Underlying EBITDAaL of SEK 2.5 billion increased by 3% organically compared to Q2 2021 driven by end-user service revenue growth and cost savings related to the Business Transformation Program.
• Profit after financial items (EBT) of SEK 1.02 billion an increase from SEK 0.97 billion in Q2 2021.
• Net profit from total operations of SEK 0.8 billion (SEK 1.23 per share) decreased by SEK 0.5 billion compared to Q2 2021, mainly related to a settled dispute from previously divested operations and the release of a provision in Q2 2021.
• Equity free cash flow from continuing operations of SEK 0.7 (1.3) billion. Over the last twelve months, SEK 5.3 billion was generated, equivalent to SEK 7.7 per share.
• First tranche of ordinary dividend and the extraordinary dividend from T-Mobile Netherlands transaction paid during the quarter.
• Successfully issued first sustainability linked bond.