CEO Letter Annual Report 2024

We move forward by embracing where we came from

2024 already feels like a distant memory. Over the past few months, we have been fully focused on building and executing on our transformation plan for 2025, looking ahead rather than behind. That said, taking a moment to reflect on our achievements and lessons learned is always a useful exercise.

Looking back, 2024 can be seen in two ways – a glass half-full or half-empty.

Tele2 delivered many critical milestones in 2024. The most significant was the mandatory swap of 5G equipment, which had to be completed by year-end. Thanks to careful planning and strong execution, we delivered on time. In 2025, we will complete the major 5G rollout, covering 99 percent of the Swedish population. Already by year-end, our network reached above 90 percent with 5G and an impressive 75 percent with 5G+, earning recognition for providing the best 5G availability in Sweden.

Beyond infrastructure, 2024 was a pivotal year for modernising our IT systems. The migration from six IT stacks to just two was as crucial as the 5G rollout. Previously, our go-to-market teams struggled with fragmented systems, making it difficult to fully leverage our broad product portfolio and cross-selling opportunities. Now, with a streamlined setup, we are equipped to engage customers with precision.

Another major strategic move was our decision to phase out the terrestrial TV network. While this led to short-term churn, it was the right long-term decision, both for the customer experience and our profitability. Our new Wi-Fi-based TV solution has been well received, and customers appreciate its flexibility and richer content.

Despite extensive IT and network transformations throughout the year, we experienced very few technical incidents in 2024. Our improved change management capabilities meant not only fewer disruptions but also faster resolution times, which is a particularly critical factor for our B2B customers, whose operations depend on reliable connectivity.

In 2024, we proudly helped some of our customers disrupt their industries or transforming their business models. One concrete case, visible to anyone living in Stockholm, is the world’s first autonomous commercial passenger ferry, which relies on our high-performance 5G network to cruise between islands. A game-changer for commuting in central Stockholm.

In the Baltics, our teams continued to excel in attracting and retaining customers. Lithuania and Latvia made strong financial contributions to the group, while Estonia showed solid operational progress in the second half of the year, entering 2025 in a better shape and stronger position.

Our sustainability efforts once again gained global recognition. We were named Sweden’s most sustainable company by Time Magazine, ranked #2 on the Financial Times list of Europe’s Climate Leaders, and were one of just 11 Swedish companies to receive an A grade in climate from CDP. Additionally, our initiatives to protect children online received widespread attention and strong engagement from customers who appreciate our work to combat the spread of child sexual abuse material.

On the financial front, we delivered all key metrics within our guidance range – glass half full.

However, we also face challenges, and our profitability is the most pressing one. In 2024, our equity free cash flow declined by 7 percent. Also, when compared to our European peers, our profitability is not where it should be. Our top line growth and underlying EBITDAaL growth slowed down in the second half of 2024, impacted by the migration of our Boxer customers. In our constantly evolving market, status quo would be unsustainable for us, making Tele2 too vulnerable, and ultimately leaves us with a half empty glass.

That is why 2025 will be a year of transformation with a sharp focus on cost and simplification. Since December, we have been scrutinising every single expense to ensure that every SEK spent contributes to business growth or enhances the customer experience.

Cost reductions alone will not make us a stronger company though. We must also again become disciplined in our priorities and reduce the complexity our organisation has inherited. This simplification includes a reduction of our workforce, which is always a difficult exercise to go through. However, this transformation is necessary to seize the growth opportunities we see ahead of us, and it will make Tele2 faster, stronger, and more resilient.

Tele2 is unique in its kind and a worldwide reference for challenger telcos. We are simply going back to our roots to take back control of our future, and we will move forward by embracing where we came from.

I am optimistic for 2025 and eager to see the results of our collective efforts.

A heartfelt thank you to our customers for your trust and loyalty, to our employees for your dedication and hard work, and to our shareholders for supporting us on this transformation journey!