BUZZ-Tele2 hits July 2022 highs on planned cost cuts, upbeat guidance

Shares in Tele2 TEL2b.ST are up 4.5% after the Swedish telecom operator announced job cuts and a better-than-expected 2025 outlook

The group plans to cut more than 600 jobs in 2025 as it seeks to reduce costs and boost profitability

J.P.Morgan notes that the cost transformation program appears much more ambitious than the Strategy Execution Plan which was presented at end-2023

For the full year 2025, Tele2 guides for a low single-digit organic growth of end-user service revenue and a mid- to high single-digit organic growth of underlying EBITDAaL

JPM attributes the EBITDAaL guidance beat to the new cost-cutting program and expects 2026 estimates to also increase

The stock, on track for its best day in nine months, reaches its highest since July 2022