Tele2 AB (publ) (TLTZF) Q1 2025 Earnings Call Transcript

2025-04-23 23:22:06 ET

Tele2 AB (publ) (TLTZF)

Q1 2025 Earnings Call

April 23, 2025 03:00 ET

Company Participants

Jean-Marc Harion - President and Group Chief Executive Officer

Peter Landgren - Group Chief Financial Officer

Petr Cermak - Chief B2C Officer

Stefan Trampus - Chief B2B Officer

Conference Call Participants

Andrew Lee - Goldman Sachs

Andreas Joelsson - Carnegie Investment Bank

Stefan Gauffin - DNB

Oscar Ronnkvist - ABG Sundal Collier

Erik Lindholm Röjestål - SEB

Fredrik Lithell - Handelsbanken

Joshua Mills - BNP Paribas Exane

Ondrej Cabejsek - UBS

Ajay Soni - JPMorgan

Keval Khiroya - Deutsche Bank

Siyi He - Citi

Felix Henriksson - Nordea

Presentation

Operator

Good day and thank you for standing by. Welcome to the Tele2 Q1 Interim Report 2025 Conference Call. [Operator Instructions] Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your speaker today, Jean-Marc Harion, President and Group CEO. Please go ahead.

Jean-Marc Harion

Thank you and good morning and welcome to Tele2’s reports call for the first quarter of 2025. With me here in Kista today, I have Peter Landgren, our Group CFO; and for Sweden, Petr Cermak, our Chief B2C Officer; and Stefan Trampus, our Chief B2B Officer.

Please turn to Slide 2 for a brief recap on our transformation plans and progress so far. 2025, as you know, is a transformation year for Tele2. Our objective is to build a faster, simpler and more agile Tele2 by coming back to Tele2’s original challenger culture. And I am happy to present you today the progresses we have made over the first quarter of 2025 to simplify organization, control our cost and prioritize our investment.

We have reduced our workforce by more than 450 positions at group level by the 15th of April. We have reopened and renegotiated 20% of our largest contracts. We have implemented a new cost governance to scrutinize and challenge all our expenses. And we have now a new leadership team in place. And even more importantly, our cultural shift, especially our cost consciousness focus is strongly supported internally. And I want to take this opportunity to thank all Tele2 employees who actively contribute to get us back to the original Tele2.

Please turn to Slide 3 for some financial highlights. I am happy to report that our Q2 – Q1, sorry, equity cash flow has been improved already by the first steps of our ambitious transformation program with the additional support of some one-offs. End-user service revenue grew by 1% in Q1, driven by the Baltics’ excellent performance. We are facing some headwind on the top line in Sweden, where our revenue growth has been burdened mainly by the migration of Boxer off the terrestrial network with a higher revenue impact than expected. On the other hand, we have had a solid start to underlying EBITDAaL with a 6% growth in the quarter, largely due to the speed of our transformation....

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