Swedish telecom operator Tele2 on Thursday raised its full-year profit forecast, citing the early success of an aggressive cost-cutting program.
The company now expects 2025 organic growth in a key profit metric, underlying earnings before interest, tax, depreciation and amortization after leases, to be slightly above 10%, up from a previous forecast for mid- to high single-digit growth.
The revision came as Tele2 reported that second-quarter underlying EBITDAaL jumped 15% organically from a year earlier to 2.9 billion Swedish Kronor, driven by what it called "sharp cost control."
The company said its cost-reduction efforts included cutting its workforce by more than 500 positions by June and renegotiating major contracts.
The profit growth significantly outpaced revenue, with total sales for the quarter growing 1% organically to 7.3 billion Swedish Kronor.
“Our organisation’s ability to transform quickly makes us confident enough to raise our full year underlying EBITDAaL guidance to slightly above 10% growth,” Chief Executive Jean Marc Harion said in a statement.
Net profit for the quarter rose to 1.2 billion Swedish Kronor from 1.0 billion Swedish Kronor in the same period last year.
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