# Tele2

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/en/companies/tele2a).

## Overview

Tele2 is a telecommunications company primarily operating in Sweden and the Baltics, offering mobile and fixed broadband services. The company is known for its strong 5G network, which covers a significant portion of Sweden's population. Tele2 has been actively modernizing its services, including transitioning from legacy TV distribution to more flexible digital solutions. The company is also focusing on digitalization and efficiency improvements to enhance customer experience and operational performance.

## Products & services

• Mobile services
• Fixed broadband
• Digital TV
• IoT connectivity solutions
• 5G network services
• Wholesale telecommunications
• Business communication solutions

- **Mobile Services** (40%) — Includes postpaid and prepaid mobile services.
- **Fixed Broadband** (25%) — Broadband internet services for residential and business customers.
- **Digital TV** (15%) — Cable and fiber TV services, including digital terrestrial TV.
- **IoT Solutions** (10%) — Connectivity solutions for Internet of Things applications.
- **Wholesale** (10%) — Telecommunications services provided to other operators.

- Mobile services
- Fixed broadband
- Digital TV
- IoT connectivity solutions
- 5G network services
- Wholesale telecommunications
- Business communication solutions

## Customers

Tele2 serves a diverse customer base, including individual consumers, small and medium enterprises (SMEs), and large enterprises. The company is particularly strong in the Swedish market, where it has a significant share of both consumer and business segments. Tele2's business customers value its IoT solutions and reliable mobile services, while consumers appreciate its competitive mobile and broadband offers. The company's focus on customer experience has resulted in high satisfaction ratings, particularly in the business sector.

- **Consumers** (primary) — Purchase mobile and broadband services for personal use.
- **SMEs** (secondary) — Use IoT and communication solutions to enhance operations.
- **Large Enterprises** (secondary) — Require comprehensive connectivity solutions.
- **Public Sector** (emerging) — Utilize network services for public communication needs.

- Consumers seeking reliable mobile and broadband services
- SMEs requiring IoT and communication solutions
- Large enterprises needing robust connectivity
- Public sector organizations using Tele2's network services
- Tech-savvy individuals interested in 5G and digital TV

## Geography

Tele2 operates primarily in Sweden and the Baltic countries, with a strong market presence in Lithuania and Latvia. The company has been expanding its 5G network in Sweden, achieving over 90% population coverage. Its operations in the Baltics are also growing, driven by strong market positions. Tele2's strategic focus on these regions allows it to leverage its network infrastructure and customer base effectively.

- Strong presence in Sweden with extensive 5G coverage
- Growing operations in Lithuania and Latvia
- Focus on expanding 5G network in key markets
- Strategic investments in Baltic region for growth
- Sweden remains the primary revenue generator

## Strategy

Tele2's strategic priorities include expanding its 5G network, enhancing digital services, and improving operational efficiency. The company is focused on simplifying its operating model and reducing costs through its Strategy Execution Program. Tele2 aims to enhance customer experience by modernizing its service offerings and leveraging digital transformation. The company is also committed to maintaining its market leadership in Sweden while growing its presence in the Baltics.

- **Expand 5G Network** (medium-term) — To enhance connectivity and customer experience.
- **Digital Transformation** (short-term) — To modernize services and improve efficiency.
- **Operational Efficiency** (medium-term) — To reduce costs and improve profitability.

- Expand 5G network to cover 99% of Sweden by 2025
- Enhance digital services for better customer experience
- Improve operational efficiency through cost-saving initiatives
- Focus on market leadership in Sweden and growth in Baltics
- Leverage digital transformation for competitive advantage

## Risks

Tele2 faces several risks, including macroeconomic and geopolitical uncertainties that could impact customer sentiment and inflationary pressures. The company's reliance on the Swedish market exposes it to regional economic fluctuations. Additionally, the transition from legacy TV distribution to digital solutions poses short-term churn risks. Industry-specific risks include regulatory changes and intense competition in the telecommunications sector.

- **Macroeconomic Uncertainty** [high] — Affects customer sentiment and spending.
- **Inflationary Pressures** [medium] — Increase operational costs and affect profitability.
- **Regulatory Changes** [medium] — Could impact business operations and compliance.

- Macroeconomic uncertainties affecting customer sentiment
- Inflationary pressures impacting operational costs
- Regional economic fluctuations in Sweden
- Transition risks from legacy to digital TV solutions
- Regulatory changes in the telecommunications industry

## Accounting

Tele2's financial reporting is influenced by the timing of revenue recognition, particularly in its service contracts. The company faces quarterly fluctuations due to seasonality in consumer spending and promotional activities. Tele2 also uses non-IFRS measures like EBITDA and underlying EBITDAaL to assess performance, which may differ from other companies' metrics. Lease accounting under IFRS 16 impacts reported EBITDAaL by including lease costs.

- **Revenue Recognition**
- **Seasonality**
- **Lease Accounting (IFRS 16)**

- Revenue recognition timing affects financial reporting
- Quarterly fluctuations due to seasonality and promotions
- Use of non-IFRS measures like EBITDA for performance assessment
- Lease accounting under IFRS 16 impacts EBITDAaL

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*Last updated: 2026-08-11T04:04:56.579468+00:00*