Tele2 AB recorded a substantial increase in first-quarter net profit, reporting 6.39 billion Swedish krona for the three months ended March 31, up from 875 million krona in the same quarter a year earlier. The company attributed the bulk of the gain to cash proceeds related to the spinoff of its Baltic tower assets.
Total revenue for the quarter rose 2.5% to 7.24 billion krona. Tele2 said growth in its Swedish consumer segment - led by mobile and fixed connections - was the primary driver behind the higher top line. A key operating metric for the group, end-user service revenue, increased 3.4% compared with the prior-year period.
Management left its outlook for 2026 intact. The guidance calls for low single-digit organic growth in both revenue and core earnings, while capital expenditure is expected to run at 10-11% of sales.
During the quarter Tele2 received 4.7 billion krona in cash proceeds tied to the Baltic tower spinoff. The inflow followed the finalization of an agreement with Global Communications Infrastructure to move the tower assets into a dedicated company in late-2025.
Tele2's chief executive highlighted plans to press ahead with cost reductions and operational simplification, and said the company intends to pursue opportunities in artificial intelligence. The company did not revise its medium-term targets when announcing the quarterly results.
Although the headline net profit was driven largely by a one-off financing event, Tele2's underlying consumer services showed modest organic improvement in the quarter. The combination of a cash-rich balance sheet from the tower transaction and steady end-user revenue growth underpins management's decision to maintain its stated 2026 targets.
Investors and market participants will likely weigh the scale of the non-recurring cash inflow against the companys ability to convert modest organic growth into sustained earnings momentum while executing cost and simplification measures. Tele2s stated focus on artificial intelligence represents a strategic area management expects to capitalize on, though the company did not provide additional detail on timing or scale.
All figures and statements above are as provided by the company for the quarter to March 31.