Eltel Group: Full-year report January-December 2022

October–December 2022

  • Net sales EUR 224.0 million (226.3). Total growth -1.0% and organic growth1) in segments 2.5%
  • Operative EBITA2) EUR -4.0 million (7.0) and operative EBITA margin -1.8% (3.1)
  • Operative EBITA2) in segments EUR -1.8 million (7.3) and operative EBITA margin in segments -0.9% (3.6)
  • Operating result (EBIT) EUR -4.0 million (6.9) and EBIT margin -1.8% (3.1)
  • Net result EUR -7.7 million (4.1)
  • Earnings per share EUR -0.05 (0.02), basic and diluted
  • Cash flow from operating activities EUR 47.0 million (33.7)

January–December 2022

  • Net sales EUR 823.6 million (812.6). Total growth 1.4% and organic growth1) in segments 1.8%
  • Operative EBITA2) EUR -1.9 million (14.8) and operative EBITA margin -0.2% (1.8)
  • Operative EBITA2) in segments EUR 9.9 million (24.2) and operative EBITA margin in segments 1.4% (3.3)
  • Operating result (EBIT) EUR -2.0 million (14.5) and EBIT margin -0.2% (1.8)
  • Net result EUR -14.9 million (4.9)
  • Earnings per share EUR -0.10 (0.03), basic and diluted
  • Cash flow from operating activities EUR 16.4 million (22.3)
  • Net debt3) EUR 125.5 million (122.6)

Significant events during and after the reporting period 

  • During the fourth quarter, Eltel signed contracts with a combined value of about EUR 212 million (125). Read more on page 13. During 2022, Eltel signed contracts with a combined value of about EUR 825 million (393).
  • On 7 December 2022, it was announced that Lars Nilsson was appointed Managing Director for Eltel Sweden and member of the Group Management Team as of 9 January 2023. Lars replaces Leif Göransson, who’s resignation was announced on 4 October 2022.
  • On 15 December 2022, Eltel announced estimated negative operative EBITA for the fourth quarter 2022, which risked resulting in the full year operative EBITA not being positive.
  • On 20 December 2022, it was announced that Eltel’s emission reduction targets were approved by the Science Based Targets initiative (SBTi), which demonstrates Eltel’s commitment to tackling climate change and aligning its efforts with the objectives of the Paris climate agreement.
  • After the reporting period, Eltel signed two significant contracts with a combined value of about EUR 40 million. Read more on page 13.
  • On 14 February 2023, it was announced that Pamela Lundin has been appointed Director of Business Development for Eltel and member of the Group Management Team as of 13 March. Pamela will be leading the newly instituted Business Development function.

Key figures

EUR million

Oct-Dec 2022

Oct-Dec 2021

Jan-Dec 2022

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 24–25 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 fourth quarter, net sales in the segments increased by 2.5%, in local currency, and we continued to win new contracts with increased prices. For the full year, net sales for Group increased by 1.4%. Cash flow was strong at year end and reflected the strong seasonal pattern. However, reduced customer investments, high inflation impact and cost overruns, deteriorated the operative EBITA, as we expected and announced towards the end of the quarter. The operative EBITA for the quarter was a disappointing EUR -4.0 million or -1.8%, leading the full year figure to EUR -1.9 million, giving a margin of -0.2%.

It is clear that 2022 was a demanding and difficult year for Eltel. Some of our customers reduced their investments compared to forecast and the lower volumes are expected to continue during 2023. Therefore we are adjusting the organisation to the current situation. We have initiated a cost savings programme that is expected to save more than EUR 10 million on an annual basis. The programme will be finalised during Q1 2023 and has an increased effect in Q2 2023. It impacts more than 200 positions, plus the use of subcontractors, mainly in Norway and Finland. The savings programme is expected to lead to a restructuring charge of about EUR 5 million in Q1 2023 and I am confident the programme will provide long-term benefits.

Finland will have a rough first half of 2023, but is well positioned to improve its performance in the latter part of the year. There is a strong demand in fibre and healthy market in 5G and power transmission, along with significant growth opportunities in the renewable energy sector.

It is satisfying to see that during 2022 Sweden grew by 8.3% in local currency. The operative EBITA margin has improved over the year, with second half being positive. During the fourth quarter we started to see the positive effects coming from our investments in the efficiency programme One Eltel, and we expect more going forward.

Just like Finland, Norway will also have a challenging first half of 2023 due to increased uncertainty in the customer investments. We continue working to broaden the customer base. Therefore I am pleased that Eltel Norway, after the reporting period on 30 January, signed a NOK 180–200 million agreement with a new customer, Viken Fiber, one of Norway’s largest fibre companies.

In my CEO statement for the third quarter, I said that it looks as though we have bottomed out in Denmark. The fourth quarter proved this with Eltel Denmark growing by 8.4% with improved operative EBITA margin. We continue to see good growth opportunities in the Danish market and expect the operative EBITA to grow accordingly.

In Other business Smart Grids Germany continued to deliver strong margins in a favourable market. High Voltage Poland still suffers heavily from inflation and lack of subcontractors due to the war in Ukraine. We continue our actions to mitigate the situation.

It was rewarding to see that our emission reduction targets were officially recognised by the Science Based Targets initiative (SBTi) in December. This achievement demonstrates our commitment to addressing the pressing issue of climate change and aligning our efforts with the goals set in the Paris Agreement.

Through our newly formed Business Development team we accelerate the development and implementation of new business concepts within the green transition, such as wind and solar energy, e-Mobility and battery energy storage solutions.

I am excited to see how Eltel contributes to a more sustainable and connected society. I am eager to further develop the company as the leading provider for critical infrastructure, with high employee engagement and exceptional customer experience.

I am grateful to all our employees for their efforts and dedication during this very challenging year. I would also like to thank our customers, shareholders and other stakeholders for good collaboration.

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 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 CET on 16 February 2023.

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 2022 the annual sales was EUR 823.6 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.