Interim Report Q1 2020 – Presentation

January–March 2020

  • Net sales EUR 236.6 million (251.0). Total growth -5.7% and organic growth1) in Power and Communication -1.5%
  • Operative EBITA2) EUR -2.1 million (-3.0) and operative EBITA margin -0.9% (-1.2)
  • Operating result (EBIT) EUR -2.2 million (-3.6) and EBIT margin -0.9% (-1.4)
  • Net result EUR -4.8 million (-7.4)
  • Earnings per share EUR -0.03 (-0.05), basic and diluted
  • Cash flow from operating activities EUR -4.7 million (-33.8)
  • Net debt3) ended at EUR 133.8 million (194.2)

Significant events during and after the first quarter

  • On 22 January 2020, Eltel signed an agreement to divest its German Communication business to Circet Group. The transaction is estimated to give a positive cash flow impact of EUR 19 million and have a positive result of approximately EUR 13 million on Group EBIT in Q2 2020.
  • On 23 March 2020, Eltel signed an agreement to divest its Swedish business area Aviation & Security to LFV, Air Navigation Services of Sweden. The transaction is estimated to give a positive cash flow impact of EUR 17 million and have a positive result of approximately EUR 6 million on Group EBIT in Q2 2020.
  • In March 2020, Eltel agreed with its banks on certain amendments to its existing financial agreement that matures in Q1 2021. The new amendments include, among others, a 12-month extension of the current credit facilities until mid-Q1 2022.
  • Eltel signed five contracts of significance to a value of about EUR 240 million during January 2020-April 2020.
EUR million Jan-Mar 2020 Jan-Mar 2019 Change, % EUR million Jan-Dec 2019
Net sales Net sales
Power 74.2 87.0 -14.7 Power 377.7
Communication 160.1 161.4 -0.8 Communication 698.4
Other 2.3 3.1 -23.8 Other 13.2
Total Group 236.6 251.0 -5.7 Total Group 1,087.6
Operative EBITA2) Operative EBITA2)
Power -3.4 -4.2 18.6 Power -17.5
Communication 4.2 4.6 -8.8 Communication 18.1
Other -0.3 -0.1 -153.3 Other -0.8
Items not allocated4) -2.6 -3.3 22.9 Items not allocated4) -11.2
Total Group -2.1 -3.0 32.0 Total Group -11.3

1) Adjusted for divested operations and currency effects.
2) Eltel follows the profitability of segments with Operative EBITA. Please see page 20 for definitions of the key ratios.
3) Refers to net debt as defined in financing agreement. See page 8 for calculation.
4) Items not allocated to operating segments consist of Group management and support function.

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Elin Otter +46 72 595 46 92

elin.otter@eltelnetworks.se