Eltel Group: Interim report January–September 2022

July–September 2022 

  • Net sales EUR 207.0 million (193.8). Total growth 6.8% and organic growth1) in segments 7.1%
  • Operative EBITA2) EUR 4.1 million (4.1) and operative EBITA margin 2.0% (2.1) 
  • Operative EBITA2) in segments EUR 6.6 million (7.7) and operative EBITA margin in segments 3.6% (4.4) 
  • Operating result (EBIT) EUR 4.1 million (4.0) and EBIT margin 2.0% (2.1)
  • Net result EUR -0.3 million (1.8)
  • Earnings per share EUR -0.00 (0.01), basic and diluted
  • Cash flow from operating activities EUR -30.6 million (-7.8)

January–September 2022 

  • Net sales EUR 599.6 million (586.2). Total growth 2.3% and organic growth1) in segments 1.5%
  • Operative EBITA2) EUR 2.1 million (7.8) and operative EBITA margin 0.4% (1.3) 
  • Operative EBITA2) in segments EUR 11.7 million (16.9) and operative EBITA margin in segments 2.2% (3.2) 
  • Operating result (EBIT) EUR 2.0 million (7.5) and EBIT margin 0.3% (1.3)
  • Net result EUR -7.3 million (0.8)
  • Earnings per share EUR -0.05 (0.00), basic and diluted
  • Cash flow from operating activities EUR -30.6 million (-12.0)
  • Net debt3) EUR 166.1 million (152.3)

Significant events during and after the reporting period

  • During the third quarter, Eltel signed contracts with a combined value of about EUR 406 million, with one of the agreements being Eltel’s largest fibre contract ever. Read more on page 13.
  • On 1 August 2022, Håkan Dahlström assumed the position as President and CEO of Eltel.
  • On 4 October 2022, it was announced that Leif Göransson, Managing Director of Eltel Sweden and member of the Group Management Team, has decided to leave the company. Leif will remain in his position until 31 December 2022.
  • After the reporting period, Eltel has signed three significant contracts with a combined value of about EUR 73 million. Read more on page 13.

Key figures

EUR million

Jul-Sep 2022

Jul-Sep 2021

Jan-Sep 2022

Jan-Sep 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 25–26 for definitions of the key ratios.

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


Comments by the CEO

During the third quarter, net sales increased by 6.8%. In segments, growth adjusted for currency effects was 7.1%. The positive development is based on our strong market position and the high demand for our services, as the investment levels of our major customers are rising. My view is that the demand in the market is increasing faster than the supply.

In terms of profitability, 2022 has turned out to be a difficult year. Operative EBITA for the first nine months of the year was EUR 2.1 million (7.8) reflecting significantly increased costs and low utilisation due to high sick-leave rates and employee turnover. Adding to the above, we are also impacted by shortage of materials and subcontractors. The third quarter alone was somewhat better than year-to-date, with operative EBITA at EUR 4.1 million (4.1).

We now see that the cost increases are more wide spread than we initially anticipated. We have secured agreements with most of our customers to recover parts of the inflation related cost increases. However, we have previously overestimated the degree of cost compensation. It will also take time before the agreed indexation mechanisms take full effect.

In Finland, the market demand continues to be strong. However, we are still catching up from the delays in project deliveries stemming from the long winter and the six-week ICT strike in the spring. On top of this, projects are also being pushed forward due to lack of materials.

In Sweden, net sales growth in the quarter was 14.7% in local currency. Whilst the smart metering projects continued to ramp up, also Communication grew by 7.3% in local currency. However, high employee turnover impacted the operative EBITA margin negatively as valuable production time was used for trainings and onboarding of new personnel. Workforce planning, utilisation rate and recruitments are priorities for Sweden at the moment.

In Norway, net sales grew by 13.8% in local currency, mainly as a result of higher investment levels by our main customer compared to the previous year. The weak development in profitability relates mainly to change in production mix.

In Denmark, net sales and operative EBITA remained low, in line with the comparative period. However, the order book has increased with recently awarded agreements and it looks as though we have bottomed out.

In Other business, Smart Grids Germany continued to deliver strong margins in a favourable market. High Voltage Poland improved from previous year, but still suffers from increased costs relating to materials, subcontractors and delayed projects.

In the quarter, we signed agreements with an exceptionally high combined value of about EUR 406 million. Whilst the orderbook is strong, we note that shortages in skilled workforce and subcontractors are a risk to volume growth and may increase both the duration and the cost of ramp up. On the other hand, the high demand provides us the momentum to increase prices in our tender offers and thereby improve our profitability over time.

Strong megatrends such as electrification and digitalisation are shaping our market and new opportunities are opening up. We have established a new Business Development function that will develop and implement existing and new business concepts to increase our sustainable, profitable growth. In addition, we will improve the synergies between the countries, and take further advantage of the expertise and know-how of each country.

Eltel has an important role to play in the society and I am looking forward to promoting and building on our mission to transform the society into a more sustainable and better connected place. For me this is very inspiring and the reason why I decided to join Eltel as its new CEO. I am excited about the opportunity to further develop Eltel into a leading provider for critical infrastructure with high employee engagement and top class customer experience.

Håkan Dahlström, 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. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 CET on 2 November 2022.

About Eltel

Eltel is a leading service provider for critical infrastructure that enables renewable energy and high-performing communication networks. Eltel designs, plans, builds and secures the operation of networks for a more sustainable and connected world today and for future generations. In total, we have about 5,000 employees and in 2021 the annual sales was EUR 812.6 million. The head office is located in Sweden and Eltel's shares have been listed on Nasdaq Stockholm since 2015. Read more at www.eltelnetworks.com.