Strategy and targets

Our strategy – Operational Excellence

A decision was taken in 2017 to restructure Eltel in order to focus on areas with a balanced risk level in which it has a leading market position and a high level of expertise, and in which the business model is repetitive and primarily targeted towards build, service and maintenance. In 2019, Eltel took the next step on its transformation journey. A Nordic focus with lower risk and fewer capital-intensive projects will enable us to continue to develop, grow and invest in the company to ensure long-term sustainable value creation for the company and its shareholders. Work to discontinue remaining non-strategic operations is expected to be completed during 2021.

In parallel, a strategy for existing operations has been developed, with a focus on operating profitability. The strategy, which is being implemented in 2019–2021, aims to raise the operating margin by generating customer focus, improving efficiency, measuring and tracking relevant key performance indicators, and simplifying the daily operations of our technicians. Furthermore, the focus is on improving the competence level within the organisation through various forms of training and recruitment.

This will create the foundation for sustainable growth, profitability and shareholder value.

Eltel’s financial targets by end of 2023

Group EBITA margin 5%
Annual growth in the Nordics from 2022 onwards 2–4%
Leverage¹ 1.5–2.5x net debt/EBITDA
Dividend payout Subject to leverage target

¹Net debt/EBITDA is calculated as defined in the financing agreement. Net debt is defined as interest-bearing debt consisting of short-term and long-term debt less cash and cash equivalents. Both net debt and EBITDA exclude IFRS16 impact.


Elin Otter +46 72 595 46 92