Eltel - A clear estimate beat
Eltel’s Q4 report delivered a clear positive surprise after a disappointing Q3 report. Sweden was able to break even, and positive development continues this year as Eltel guides increasing operative EBITA margin.
- Eltel Q4 revenue landed at EUR 226.3m vs the EUR 206.1m/207.0m Evli/consensus estimates, a decrease of 1% y/y.
- EBITDA came in at EUR 14.5m, compared to the EUR 13.2m/13.4m Evli/consensus estimates. Operative EBITA was EUR 7.0m vs our EUR 4.8m estimate, meaning operative EBITA margin was 3.1% vs our 2.3% estimate, while EBIT amounted to EUR 6.9m vs the EUR 4.6m/4.9m Evli/consensus estimates. The results were a positive surprise especially considering record-high sick leave rates as well as further project postponements which were caused by the pandemic. The current winter environment in the Nordics, however, will negatively affect Q1 results.
- Profitability in Finland remained strong while Sweden was able to reach a positive result (operative EBITA margin was 1.4% vs our 0% estimate). Norway’s profitability was still decent while Denmark declined to a low 0.6% operative EBITA margin. Denmark’s decline was mainly due to a 35% y/y drop in revenue. Finnish top line declined a bit while Sweden and Norway both grew.
- Eltel guides FY ’22 operative EBITA margin to increase.
- The BoD proposes no dividend to be paid for the year.