We Continue to Be Pleased With Tele2's Capital Allocation Decisions; Stable Q4 2021

Tele2's fourth-quarter results were in line with company-provided consensus, with service revenue coming in at SEK 4.9 billion, a 2% organic increase and underlying EBITDA (after leases) growing 1% organically during the quarter. Sweden continues to show stability seen in previous quarters, with consumer mobile and broadband revenue being supported by steady price increases and stable customer bases. Management is executing a strategy of balancing “value with volume,” which seems to be paying off. The Baltics' revenue continued to climb at double-digit rates, while EBITDA grew by high single digits since October 2021. Management also released its 2022 and medium-term guidance, where they expect low-single-digit revenue growth and mid-single-digit EBITDA growth. We maintain our SEK 115 fair value estimate.