Eltel Group: Half-year report January–June 2022

April–June 2022

  • Net sales EUR 208.6 million (210.4). Total growth -0.8% and organic growth1) in segments -2.4%
  • Operative EBITA2) EUR 0.5 million (4.4) and operative EBITA margin 0.2% (2.1)
  • Operative EBITA2) in segments EUR 4.4 million (6.8) and operative EBITA margin in segments 2.4% (3.6)
  • Operating result (EBIT) EUR 0.4 million (4.3) and EBIT margin 0.2% (2.0)
  • Net result EUR -2.6 million (1.6)
  • Earnings per share EUR -0.02 (0.01), basic and diluted
  • Cash flow from operating activities EUR 8.8 million (13.2)

January–June 2022

  • Net sales EUR 392.6 million (392.4). Total growth 0.0% and organic growth1) in segments -1.2%
  • Operative EBITA2) EUR -2.0 million (3.7) and operative EBITA margin -0.5% (1.0)
  • Operative EBITA2) in segments EUR 5.1 million (9.2) and operative EBITA margin in segments 1.5% (2.6)
  • Operating result (EBIT) EUR -2.1 million (3.5) and EBIT margin -0.5% (0.9)
  • Net result EUR -7.0 million (-1.0)
  • Earnings per share EUR -0.05 (-0.01), basic and diluted
  • Cash flow from operating activities EUR 0.0 million (-4.2)
  • Net debt3) EUR 131.0 million (143.9)

Significant events after the reporting period

  • On 1 July 2022, it was announced that Eltel Norway signed an agreement with Telenor to further upgrade Telenor’s telecommunications network with 5G technology. The agreement is worth about EUR 36–40 million.
  • On 12 July 2022, it was announced that Eltel Denmark has entered into a strategic cooperation with GlobalConnect to establish about 18,000 high speed fibre connections in Denmark. The agreement is worth about EUR 47 million.

Key figures

EUR million

Apr-Jun 2022

Apr-Jun 2021

Jan-Jun 2022

Jan-Jun 2021

Jan-Dec 2021

Net sales






Net sales growth, %






Operative EBITA2)






Operative EBITA margin, %






Operative EBITA2), segments






Operative EBITA margin, %, segments






Operating result (EBIT)






Return on operative capital employed (ROCE), %






Net working capital






Net debt3)






Number of employees, average






1)      Adjusted for divested operations and currency effects.

2)      Eltel follows the profitability of segments with Operative EBITA. Please see pages 22–23 for definitions of the key ratios.

3)      From Q1/2022 onwards, Eltel presents net debt including IFRS 16 leasing liabilities.


Comments by the CEO

Eltel’s second quarter result was affected by the sharp increase in inflation and a delayed start of the ground work season due to long winter. Furthermore, a six-week strike among information and communication technology personnel in Finland contributed to a 0.8% year-on-year decline in our net sales for the quarter. However, organic growth in Sweden and Norway was 14.0% and 9.6% in local currency, respectively.

Our operative EBITA for the second quarter was predominantly hit by inflation, with some impact also from inefficiencies caused by the still elevated sick-leave rates due to COVID-19 and the late spring. The increase in fuel and material prices were the main reasons for the decrease in the operative EBITA, year-on-year.

We have spent much time with our customers to agree on how to best handle the inflation. The discussions have been positive and we have secured agreements with most of our customers to recover parts of the cost increases, although full recovery will not be possible.

Finland continues to see a strong fibre and 5G market ahead, but the second quarter net sales declined year-on-year due to the strike and the late start of ground works. Closing of certain projects led to increased margins.

In Sweden, the smart metering projects are up and running and performing well. We see growth in the communication business, which had a modest positive impact on the result. We continue to invest in the efficiency programme “One Eltel”, to further improve our productivity.

Norway continued to grow from the comparative period, as our customers’ investment levels are increasing and fibre and 5G volumes are picking up. A change in business mix, increased sick-leave rates and inflation, however, affected the margins.

Danish numbers were, as expected, impacted by the partial insourcing of an agreement by a major customer at the end of Q2 2021. However, after the reporting period, on 12 July 2022, Eltel Denmark signed a strategic agreement with GlobalConnect, which will generate about EUR 47 million in net sales over the next three and a half years. The agreement gives us good growth opportunities in the Danish market.

In Other business, Smart Grids Germany continued to deliver strong margins in a favourable market while High Voltage Poland continued to be heavily impacted by the war in Ukraine and the inflation. Actions are being taken to mitigate the situation and we are seeking compensation from our customers, but the processes are expected to be lengthy and there is high uncertainty relating to the outcome.

In conclusion there are still uncertainties in the market regarding the geopolitical situation and the cost increases, which will continue to affect us. However, the communication market is healthy with 5G and fibre being the main drivers. In power, there is a clear demand to upgrade and modernise power grids in the Nordics.

As I am leaving the CEO position on 31 July, I would like to take this opportunity to thank all my colleagues across the Eltel Group with whom I have had the opportunity to work with for the past four years. Together, we have worked hard to execute on the Nordic strategy, improved our customer satisfaction index and safety performance as well as the employee engagement score. We have taken an industry-leading position in sustainability and we have improved our balance sheet. Eltel is now a more stable company and is in a good position to pursue sustainable profitable growth going forward.

Casimir Lindholm, President & CEO

For further information, please contact:

Saila Miettinen-Lähde, CFO

Phone: +358 40 548 3695, saila.miettinen-lahde@eltelnetworks.com

Elin Otter, Director, Communications and Investor Relations

Phone: +46 72 59 54 692, elin.otter@eltelnetworks.com

This information is information that Eltel AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 CEST on 26 July 2022.

About Eltel

Eltel is a leading Nordic field service provider for communication and power networks. We deliver a comprehensive range of solutions from maintenance and upgrade services to project delivery. This includes design, planning, building, installing and securing the operation of networks for a more sustainable and connected world today and for future generations. In 2021, Eltel had annual sales of EUR 812.6 million. The total number of employees currently stands at around 5,000. Eltel AB is listed on Nasdaq Stockholm.