Tele2 Earnings: 3% and 2% Growth in Service Revenue and EBITDAaL; New CEO Starting November

Narrow-moat Tele2 increased end-user service revenue by 3% year on year in the third quarter, slightly lower than the previous two quarters, but in line with its mid-single-digit growth guidance for 2024. EBITDA (after leases) grew 2% organically, with energy costs partly offsetting revenue growth as the firm did not receive the EUR 25 million electricity support from last year. Tele2’s midterm cost plan keeps progressing well, with SEK 225 million in run-rate cost savings this quarter compared with a target of SEK 600 million by the end of 2026. We are maintaining our SEK 100 per share fair value estimate, with shares looking fairly valued at this point.