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Third party research

Eltel: Profitability as expected - Evli Research

Eltel

This is a third party research report and does not necessarily reflect our views or values

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Eltel’s Q2 produced a sixth consecutive annual improvement in operative EBITA and the result was close to estimates. Eltel maintains its previous guidance and expects similar development for the rest of the year.

Q2 group revenue amounted to EUR 210.4m, down by 14% y/y and compared to the EUR 228.4m/223.1m Evli/consensus estimates.

EBITDA was EUR 12.7m vs the EUR 13.0m/13.0m Evli/consensus estimates. Operative EBITA improved to EUR 4.4m (EUR 2.8m in Q2’20) vs our EUR 4.6m estimate.

Operative EBITA margin was therefore 2.1%. EBIT amounted to EUR 4.3m vs the EUR 4.4m/4.1m Evli/consensus estimates.

Profitability margins in Finland and Denmark were above our estimates (Denmark was exceptionally good this time), while the Swedish operative EBITA margin remained in the red.

The Norwegian margin was a bit below our estimate, but Eltel expects volume pick-up there towards the end of the year. Eltel sees the restructuring in Sweden working out long-term.
Eltel guides operative EBITA margin to improve in 2021 compared to 2020 (unchanged).
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