Telecom services (AO) | 3 Scandinavia Q2 earnings: Strong margins offset softer Swedish growth

Research evidence excerpt

Telecom services (AO) | 3 Scandinavia Q2 earnings: Strong margins offset softer Swedish growth

News comment

Release date: 16 July 2026

Kristoffer Carleskär

Equity Research Analyst

+44 207 621 5149

Telecom services kcarleskar@keplercheuvreux.com

Nordics

3 Scandinavia Q2 earnings: Strong margins offset softer Swedish growth

Key points:

Q2 earnings for 3 Scandinavia (not covered), the fourth-largest mobile operator in Sweden and third in Denmark, were published

in Investor’s earnings report today. Please find our high-level comments below. Q2 earnings dates for relevant Nordic operators:

Tele2 (Buy, SEK195) and Telenor (Hold, NOK168) reported today, and Telia (Hold, SEK50) reports on 17 July.

Summary: 3 Scandinavia delivered another solid print, albeit with slower revenue growth in Sweden, but with materially

improved operating leverage, supported by the efficiency programme launched last year. In Q2, currency-adjusted service

revenue grew by c. 5%, while EBITDA rose by 18% (11% adjusted for restructuring costs in the prior-year quarter). Mobile

subscriber net intake of +64k (LTM: +257k) marked an expected seasonal improvement from the softer Q1 (+38k). 3 Sweden

continued to outperform peers on subscriber growth, although the slowdown in service revenue growth to low single digits

mirrored the pattern reported by Tele2 and Telenor in Q2, likely reflecting more limited price increases in 2026 and increased

competition in the no-frills segment. Denmark remained strong, with service revenue growth of 8%, supported by market-wide

price increases since early autumn 2025. The LTM EBITDA margin reached 36% (up from 34.4% a year ago), cash conversion

improved to 72% (Q2 2025: 59%), and leverage remained low at 1.3x net debt/EBITDA. Overall, 3 Scandinavia’s continued strong