Eltel Group: Full-year report January-December 2023

October–December 2023

  • Net sales EUR 240.2 million (224.0). Total growth 7.2% and organic growth1) in segments 10.9% 
  • Adjusted EBITDA EUR 10.2 million (3.3) 
  • Adjusted EBITA2) EUR 2.8 million (-4.0) and adjusted EBITA margin 1.2% (-1.8)
  • Adjusted EBITA2) in segments EUR 5.0 million (-1.8) and adjusted EBITA margin in segments 2.3% (-0.9)
  • Items affecting comparability EUR 0.1 million (0.0) 
  • Operating result (EBIT) EUR 2.9 million (-4.0) and EBIT margin 1.2% (-1.8)
  • Net result EUR 10.3 million (-7.7)
  • Earnings per share EUR 0.06 (-0.05), basic and diluted
  • Cash flow from operating activities EUR 39.8 million (47.0)

January–December 2023

  • Net sales EUR 850.1 million (823.6). Total growth 3.2% and organic growth1) in segments 8.8%
  • Adjusted EBITDA EUR 31.8 million (27.8) 
  • Adjusted EBITA2) EUR 1.7 million (-1.9) and adjusted EBITA margin 0.2% (-0.2) 
  • Adjusted EBITA2) in segments EUR 11.8 million (9.9) and adjusted EBITA margin in segments 1.5% (1.4) 
  • Items affecting comparability EUR -7.0 million (0.0) 
  • Operating result (EBIT) EUR -5.3 million (-2.0) and EBIT margin -0.6% (-0.2) 
  • Net result EUR -7.6 million (-14.9) 
  • Earnings per share EUR -0.07 (-0.10), basic and diluted 
  • Cash flow from operating activities EUR 34.0 million (16.4) 
  • Net debt EUR 100.6 million (125.5)

Significant events during and after the reporting period

  • On 14 November 2023, it was announced that Caroline Lindgren was appointed as the new General Counsel and Head of Sourcing at Eltel and member of the Group Management Team as of 1 February 2024. Caroline replaces Henrik Sundell, who has decided to leave Eltel for a position outside the company.
  • On 27 November 2023, it was announced that Eltel Norway and Equinor have signed a frame agreement regarding telecom-specific upgrade and modification services. Estimated value of the four-year agreement is NOK 235 million, about EUR 20 million.
  • On 12 December 2023, it was announced that Elin Otter, Director of Communications and IR and member of the Group Management Team has decided to leave Eltel for a position outside the company. A recruitment for her successor has been initiated.
  • On 22 January 2024, it was announced that Eltel Denmark and TDC Net, Denmark's largest telecommunications provider have extended their frame agreement by two years. The estimated order value is about DKK 170 million, about EUR 23 million.
  • On 7 February 2024, it was announced that Eltel Finland has signed a renewal of an existing frame agreement with the Finnish telecommunications provider DNA. The one-year agreement is worth about EUR 12.5 million.

Key figures

EUR million

Oct-Dec 2023

Oct-Dec 2022

Jan-Dec 2023

Jan-Dec 2022

Net sales





Net sales growth, %





Adjusted EBITDA





Adjusted EBITA2)





Adjusted EBITA margin, %





Adjusted EBITA2), segments





Adjusted EBITA margin, %, segments





Operating result (EBIT)





Return on operative capital employed (ROCE), %





Net working capital





Net debt





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

2023 started with strong headwinds and ended with a solid recovery. In the fourth quarter, we achieved a good top-line growth of 7.2%, contributing to an 3.2% increase for the full year, successfully meeting our annual growth targets despite unfavorable currency effects. Our intensified sales efforts have consistently driven volumes. Throughout the year, we signed new contracts valued at about EUR 714 million, increasing our committed order backlog by 13.7%, reaffirming our ability to secure new business on improved terms and conditions. Nevertheless, the fluctuations in future investments by telecom operators may influence our growth in certain markets.

In the comparative period, the adjusted EBITA in the quarter improved by EUR 6.8 million in the segments, leading to a margin of 2.3%. The improvement was even greater than in quarter three, when we started to recover from a tough start of the year, on the back of a poor ending of 2022. For the full year, we ended with a positive adjusted EBITA margin of 1.5% in the segments and 0.2% for the Group. Key drivers behind the development include our higher pricing ambitions, price negotiations and indexing, as well as the effects of the two restructuring and cost-savings programs we implemented during the year.

2023 ended with an improved financial position, with good cash flow and an all-time low net debt, following a strong focus on both. Furthermore, we expanded our customer base and we have been successful in entering into new and adjacent markets such as solar PV and e-Mobility.

In Finland, growth in several areas, such as fiber to the home and our first utility scale solar park, led to a 18.7% increase in net sales for the full year. We anticipate this market demand to extend into 2024. In regards to profitability, two challenging frame agreements in Power Services led to a difficult year. However, the profitability improved in the second half as our actions took effect and we are increasingly positive about the future.

Eltel Sweden concluded the year with a positive adjusted EBITA margin of 1.5%, a first positive year in recent history. A key driver was the revenue growth of 10.7% in local currency, mainly thanks to Smart Grids. Eltel Sweden successfully broadened its customer base and made strategic investments in the Power business to capitalize on the expanding renewable energy and e-Mobility sectors.

Eltel Norway has spent the year reshaping for the future. Restructuring and cost savings have been made to align the organization with the demand as well as new business opportunities. Focused sales investments have expanded the customer base and it is rewarding to see that Eltel Norway secured significant frame agreements with new customers.

2023 marked a strong comeback for Eltel Denmark achieving a net sales growth of 25.3% and an adjusted EBITA margin of 5.2% for the full year. Capitalizing on the active power market, Denmark successfully secured new business in the renewable energy sector, such as solar PV. Looking ahead, we see a more typical start to the year with lower volumes due to contract completions but remain confident in our ability to grow as the year progress.

In Other business, Smart Grids delivered stable net sales and good margins throughout the year, while High Voltage Poland improved the adjusted EBITA by EUR 2.7 million. This proves that our strategy to reduce risks by narrowing the scope of the business is paying off.

Eltel experienced increased sustainability expectations from our customers in 2023. As the industry leader with sustainability integrated into our operations, we welcome this development as it gives us a competitive edge. Climate action is the main sustainability driver and more than 60% of our customers have climate targets approved by the Science Based Targets initiative (SBTi). Our own targets position us an attractive partner that can help our customers achieve their climate ambitions.

To conclude 2023, we launched and started executing on our new strategy, which involves developing both our classic and new businesses in parallel. We have taken the first steps in creating a foundation to build on in the coming years, as we strive toward sustainable and profitable growth. For 2024 this means we will continue to work hard to improve our profitability, expand our customer base and enter into new and adjacent markets.

I would like to thank our customers, owners and investors for continuing to put their confidence and trust in Eltel. I look forward to continuing to drive digitalization and electrification together. 

Håkan Dahlström, President & CEO


For further information, please contact:

Tarja Leikas, CFO

Phone: +358 40 730 77 62, tarja.leikas@eltelnetworks.com

Elin Otter, Director, Communications and Investor Relations

Phone: +46 72 595 46 92, 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 14 February 2024.

About Eltel

Eltel is the 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 2023 the annual sales was EUR 850.1 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.