Tele2 AB (publ)

Good day and thank you for standing by. Welcome to the Tele2 Second Quarter Interim Report 2025 Conference Call. At this time, all participants are in the listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 and 1 again. Please be advised that today's conference is being recorded. And now, I'd like to hand the conference over to Jean-Marc Harion, President and Group Chief Executive Officer. Please go ahead, sir.

Thank you, and good morning, and welcome to Tele2's report call for the second quarter of 2025. With me today, I have Peter Landgren, our group CFO. For Sweden, Peter Tjermak, our chief B2C officer, and Stefan Trampus, our chief B2B officer. And for the Baltics, Petras Masiulis, our CEO of Baltics. Please turn to slide two for a brief recap of our transformation plans and progress so far. 2025 is a transformation year for Tele2. Our objective is to build a faster, simpler, and more agile company by coming back to Tele2's original challenger culture. I'm happy to present the progress we have made over the first half year of 2025 to simplify our organization, control our costs, and prioritize our investment. We have reduced our workforce by more than 500 positions by the end of June. We have implemented a new cost governance to scrutinize and challenge all our expenses. We have reopened and renegotiated half of our 350 largest contracts. We are investing in the development of our own channels and the reinforcement of our data analytics and AI expertise to depend less on third-party channels for the growth of our top line in Sweden. We have now a new leadership team in place, and even more importantly, our cultural shift, especially our cross-consciousness focus, is strongly supported internally. I'm taking this opportunity to thank all Tele2 employees who actively contribute to getting us back to the original Tele2. Please turn to slide three for some financial and commercial highlights. And user service revenue grew by 2% in Q2, consistent with our guidance target, despite the impact of the discontinuation of Boxer Terrestrial TV in Sweden at the beginning of the year. On the other hand, we have delivered an outstanding 15% growth of underlying EBITDA in the quarter, thanks to the fast execution for our transformation program, with significant contribution from workforce reductions and other cost savings across operations. Equity free cash flow amounted to 1.6 billion SEC, hence another strong quarter following the 2 billion SEC generated in Q1. Based on the strong performance, we raised our full year EBITDA guidance, to which I will come back at the end of our presentation. Key events during the second quarter include the launch of our new flexible TV and streaming portfolio, the opening of new stores, and the revamp of Tele2.se, and the relaunch of Tele2 Brands, where Tele2's most popular co-worker ever, the sheep Frank, returned after a few years of free time. All these initiatives have been very well received by our customers. In terms of sustainability, we are very proud of once again being named Europe's climate leader by Financial Times and Sweden's most sustainable company for the second year in a row and 23rd worldwide by Time Magazine. Please move to page four for more details on our results. As I said, end-user service revenue grew by 2% organically in Q2, driven by continued strong growth in the Baltics. And accelerating growth in Sweden business, excluding Boxer's impact, group and user service revenue grew by 3%. The 15% growth in underlying EBITDA was driven by the transformation in the Baltic revenue growth. Our strong equity free cash flow benefited from lower paid capex year on year, of which Peter will soon walk you through the details. When it comes to booked capex, capex or two sales increased from 11.5% in Q1 to 12.4% in Q2, leading to 12% for the first half year. All leverage remained unchanged at 2.2 times despite the dividend payment in May. In Sweden, consumer, as already commented, connectivity grows continue to be upset by the decommissioning of 23L Boxer TV at the beginning of the year. In Sweden, business and user service revenue growth accelerated to 4% alongside continued solid mobile RGU growth. The Baltic grew end user service revenue by 7%, and the underlying EBITDA grew by a massive 20% in the Baltics, with double-digit growth across markets. Let's move to slide 6 for more details on Swedish consumer. Mobile end-user service revenue grew by 2%, driven by 3% in prepaid, partly offset by continued decline in prepaid. Fixed broadband grew end-user service revenue by 3%, mainly due to ASPU growth. While Tele2 TV remains stable, end-user service revenue for DTV declined by 9%, entirely driven by Boxer TV migration. For full year 2025, we continue to anticipate Boxer revenue to be roughly 225 million below 2024, with minor year-on-year impact on EBITDA as our Boxer business would have become loss-making in 2025. Total consumer and user service revenue declined by 1% in the quarter, excluding Voxel Impact, consumer and user service grew by 1%. Let's look at consumer KPI on slide seven. Mobile was paid at 10,000 RGUs during Q2, following a seasonally slow Q1, in which we also executed price adjustments. Mobile ASPU declined by 1% year-on-year, again impacted by increasing IFRS 15 fair value adjustment in Tele2 customer base, which did not have a handset binding until 18 months ago. Excluding this adjustment, ASPU grew by 1%. Fixed broadband declined by 1,000 LGUs in Q2, mostly in open fiber networks areas where we have observed quite aggressive competition during the quarter. On the other hand, ASPU grew by 2% due to price adjustments. Our TV business stabilized its customer base as the RGU loss in Q2 was only one-third of the decline seen in the last couple of quarters. As in previous quarters, the entire RGU decline was due to Boxer, and I'm happy to see that our flexible TV and streaming portfolio has generated good customer intake of setting books for customers' loss. 60% of our non-group agreement customers are now on flex offers. Please move to slide eight for Sweden Business. In Q2, Sweden Business accelerated end-user service revenue growth to a strong 4%, with all main product lines growing. Growth across our IoT and large segments was partly offset by the micro segment, which is still struggling due to continued economic conditions. This change in segment mix is reflected in the mobile ASPU year-on-year evolution. Mobile grew by 4%, driven by our IoT business and continued solid LGU growth amongst large customers. Solutions grew by a strong 5%, while fixed turned into slight growth for the first time in years. Please move to slide nine for Sweden financials. To summarize, our Swedish end-user service review was flat in Q2 as growth in business was upset by the box show decommissioning and consumer size. Underlying EBITDA grew by a massive 13% thanks to workforce reduction, sharp cost control, and ongoing negotiations of large contracts. The cash conversion has improved to 63% over the last 12 months. And now let's move to Baltic financials on slide 11. Once again, our Baltic operations have performed excellently with continuous strong top and bottom line growth in Q2. Total end-user service revenue continued to grow at 7%, supported by previous and recent price adjustments. All markets continue to grow underlying EBITDA by double digits in Q2, leading to a 20% growth for the Baltics as a whole. In addition to top line increase, the drivers of this outstanding performance are, like in Sweden, strict cross-discipline workforce predictions and improving equipment margins. I'm particularly happy to see the turnaround in Estonia materialize so quickly. Cash conversion increased to a strong 77% during the last 12 months, affecting increasing EBITDA margin. It is important to add that we are strengthening the everyday collaboration between Baltics and Swedish organizations to ensure we are efficiently sharing operational best practice. Let's move to slide 12 for Baltic operational KPIs. All markets delivered positive postpaid net intake in the quarter, leading to a total increase of 19,000 RGUs prepaid declined by 21,000 RGUs, mainly impacted by the implementation in Q1 of prepaid registration in Lithuania. A look at our total Baltic mobile business shows that 78% are postpaid customers, accounting for 88% of mobile and user service revenue, in turn implying a postpaid ASPU roughly twice the level of prepaid. Blending organic ASPU increased by a strong 12% driven by price adjustment and continued prepaid to postpaid migration.

And with that, I hand over to Peter, who will go through the financial overview. Hello?