Eltel Group: Half-year report January–June 2023

April–June 2023

  • Net sales EUR 208.1 million (208.6). Total growth -0.2% and organic growth1) in segments 8.4%
  • Adjusted EBITDA EUR 5.6 million (7.9)
  • Adjusted EBITA2) EUR -1.5 million (0.5) and adjusted EBITA margin -0.7% (0.1)
  • Adjusted EBITA2) in segments EUR 2.1 million (4.4) and adjusted EBITA margin in segments 1.1% (2.4)
  • Items affecting comparability EUR 0.0 million (0.0)
  • Operating result (EBIT) EUR -1.5 million (0.4) and EBIT margin -0.7% (0.2)
  • Net result EUR -4.6 million (-2.6)
  • Earnings per share EUR -0.03 (-0.02), basic and diluted
  • Cash flow from operating activities EUR -2.2 million (8.8)

January–June 2023

  • Net sales EUR 396.5 million (392.6). Total growth 1.0% and organic growth1) in segments 7.8%
  • Adjusted EBITDA EUR 8.0 million (13.0)
  • Adjusted EBITA2) EUR -7.0 million (-2.0) and adjusted EBITA margin -1.8% (-0.5)
  • Adjusted EBITA2) in segments EUR 0.0 million (5.1) and adjusted EBITA margin in segments 0.0% (1.5)
  • Items affecting comparability EUR -6.1 million (0.0)
  • Operating result (EBIT) EUR -13.1 million (-2.1) and EBIT margin -3.3% (-0.5)
  • Net result EUR -19.7 million (-7.0)
  • Earnings per share EUR -0.13 (-0.05), basic and diluted
  • Cash flow from operating activities EUR -25.9 million (0.0)
  • Net debt EUR 141.6 million (131.0)

Significant events during and after the reporting period

  • On 6 April, Eltel issued subordinated sustainability-linked hybrid capital securities in the aggregate principal amount of EUR 25 million.
  • During the second quarter, Eltel signed contracts with a combined value of about EUR 164 million (65). Read more on page 13.
  • On 13 April, it was announced that Eltel Norway signed a one-year prolongation to its agreement with Telenor for about EUR 70–90 million.
  • On 3 May, it was announced that Eltel and Helen have signed an agreement for a large-scale solar park in Finland, worth about EUR 3.1 million.
  • On 25 May, it was announced that Eltel’s Smart Grids business in Sweden signed a contract with Vattenfall to install 664,000 smart meters to a value of EUR 51 million.
  • On 29 June, Eltel made the announcement that Tarja Leikas will assume the role of CFO as of 1 August 2023, replacing Saila Miettinen-Lähde who is stepping down from her role, effective 31 July 2023.
  • After the reporting period, on 20 July, it was announced that Eltel Finland has signed an agreement with Fingrid to build a 64 km long 400+110 kV transmission line. The contract is worth about EUR 19 million.

Key figures






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Apr-Jun 2023

Apr-Jun 2022

Jan-Jun 2023

Jan-Jun 2022

Jan-Dec 2022

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Adjusted EBITDA






Adjusted EBITA2)






Adjusted EBITA margin, %






Adjusted EBITA2), segments






Adjusted EBITA margin, %, segments






Operating result (EBIT)






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Number of employees, average






1) Organic growth is adjusted for currency effects.

2) Eltel follows the profitability of segments with adjusted EBITA, which does not include restructuring costs and other items affecting comparability. Eltel has changed its terminology since Q1 2023 from operative EBITA to adjusted EBITA for the purpose of additional clarity and alignment with market practice. Please see pages 24–25 for definitions of the key ratios.

Comments by the CEO

The second quarter was, to a large extent, a continuation of Q1 with mixed results across our segments. Our intensified sales efforts continued to drive volumes, with an 8.4% organic growth in the segments and a 5.0% increase for the Group, adjusted for currency effects.

Except for in Norway, the demand for our services was rising, and we secured new contracts worth about EUR 164 million, maintaining the momentum of increasing the volume compared to the same quarter of previous year. This reaffirms our capacity to secure new business on improved terms and at increased prices. Nevertheless, the uncertainties associated with future investments by telecom operators may influence our future growth.

Regarding profitability, Q2 has shown improvement from Q1, leading to an adjusted EBITA margin of 1.1% for the segments and -0.7% for the Group. We continued to be challenged with decreased volumes in Norway and issues in specific Power Services contracts in Finland, but remain focused on addressing these challenges and on leveraging growth opportunities to improve our profitability.

In Finland, we anticipated these challenges in late 2022, and we have since put mitigating actions in place. These measures will lead to gradual profitability improvements. A strong fiber market in Finland is driving significant growth in net sales, and we have several ongoing opportunities in the renewable energy sector.

In Norway, further reductions in customer investments led to overcapacity and inefficiency in the second quarter. During the first half of the year, customer investments declined further than foreseen when implementing the restructuring program. Consequently, additional restructuring actions in Norway will be taken.

Sweden continued its strong growth trajectory, marking the seventh consecutive quarter of increased net sales in local currency. Moreover, the country unit maintained a positive adjusted EBITA margin for the fourth consecutive quarter, underscoring the turnaround in the Swedish operations.

Denmark continued to perform strong, with a substantial increase in net sales and improved margins. This positive outcome reflects the country unit’s ability to drive growth from existing contracts as well as from new wins, and success in increasing prices.

We have started to see positive effects from implementing indexes in contracts, which partly compensate the cost increases of the past year. We remain committed to executing cost-saving measures, capitalizing on growth opportunities, especially in the renewable energy sector, and striving for improved profitability in the long term.

Despite the current challenges in the business, I am optimistic about the future. I am confident that we are doing the right things in Eltel and we have what is needed to contribute to the development towards a more digitalized, electrified and sustainable society.

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 CEST on 27 July 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.