January-
- Net sales
EUR 176.3 million (188.4). Total growth -6.4% and organic growth1) in segments -4.0% -
Adjusted EBITDA
EUR 3.6 million (2.4) - Adjusted EBITA2) EUR -4.0 million (-5.5) and adjusted EBITA margin -2.3% (-2.9)
-
Adjusted EBITA2) in segments
EUR -0.8 million (-2.1) and adjusted EBITA margin in segments -0.5% (-1.2) -
Items affecting comparability
EUR -23.2 million (-6.1) -
Operating result (EBIT)
EUR -27.2 million (-11.6) and EBIT margin -15.4% (-6.2) -
Net result
EUR -30.5 million (-15.1) -
Earnings per share
EUR -0.20 (-0.10), basic and diluted -
Cash flow from operating activities
EUR -4.9 million (-23.7) -
Net debt
EUR 114.9 million (158.4)
Significant events during and after the reporting period
- During the first quarter,
Eltel signed new contracts with a combined value of aboutEUR 112.5 million (244) and increased the value of the total orderbook3) toEUR 1.2 billion . Read more on page 13. -
On 22 January, it was announced that Eltel Denmark and TDC Net have extended their frame agreement by two years. The estimated order value is about
DKK 170 million , aboutEUR 23 million . -
On 7 February, 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 . -
On 26 February, it was announced that Alexandra Kärnlund was appointed as the new Director of Communications at
Eltel and member of the Group Management Team. Alexandra replacesElin Otter , who has decided to leaveEltel for a position outside the company. Alexandra Kärnlund assumes her role inApril 2024 . -
On 10 April,
Eltel signed an agreement to divest its High Voltage business inPoland toMutares SE & Co. KGaA , a listed private equity investor headquartered inMunich, Germany . The transaction is expected to close during Q2 2024 and is subject to customary regulatory approval.
Key figures
EUR million | Jan- | Jan- | Jan- |
Net sales | 176.3 | 188.4 | 850.1 |
Net sales growth, % | -6.4% | 2.4% | 3.2% |
Adjusted EBITDA | 3.6 | 2.4 | 31.8 |
Adjusted EBITA2) | -4.0 | -5.5 | 1.7 |
Adjusted EBITA margin, % | -2.3% | -2.9% | 0.2% |
Adjusted EBITA2), segments | -0.8 | -2.1 | 11.8 |
Adjusted EBITA margin, %, segments | -0.5% | -1.2% | 1.5% |
Operating result (EBIT) | -27.2 | -11.6 | -5.3 |
Return on operative capital employed (ROCE), % | 9.7% | -7.9% | 5.3% |
Net working capital | -59.0 | -5.4 | -49.8 |
Net debt | 114.9 | 158.4 | 100.6 |
Number of employees, average | 4,885 | 5,103 | 5,024 |
1) Organic growth is adjusted for currency effects.
2)
3) Total orderbook includes the committed order backlog and the best estimate for uncommitted remaining parts of frame agreements until the end of the agreement.
Comments by the CEO
The year has started much as predicted. Coming off a year of strong growth, we now see net sales stabilizing, although a harsh winter affected the volumes. Organic growth in the segments was -4.0% and -5.9% for the Group. Nevertheless, we managed to improve our adjusted EBITA by
Throughout the quarter, we signed new contracts valued at about
In Communication, we observe traditional customers reducing their investment levels and volumes, while new telecom customers are entering the space and partly compensating for the reduction.
In Power, we see an underlying increase in demand with one exception in the Finnish distribution network, due to an updated regulation.
In
In
In
The business in
After the reporting date, on 10 April, we signed an agreement to divest our Polish High Voltage business to Mutares, a listed private equity investor. The transaction creates value for us and our shareholders by minimizing complexity and risks associated with the project business in
Going forward, we will continue to execute on our strategy, develop new service offerings and broaden our customer base in our core markets. Improved productivity and profitability are key elements for
Håkan Dahlström, President & CEO
For further information, please contact:
Phone: +358 40 730 77 62, tarja.leikas@eltelnetworks.com
Phone: +46 72 595 46 92, elin.otter@eltelnetworks.com
This information is information that
About
https://news.cision.com/eltel/r/eltel-group--interim-report-january-march-2024,c3968447
https://mb.cision.com/Main/11435/3968447/2761724.pdf
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