Eltel - Q2 figures fell below estimates
Eltel’s Q2 top line was soft relative to estimates and profitability fell clearly below expectations as inflation hit results more than was expected.
- Eltel Q2 revenue decreased by 0.8% y/y to EUR 208.6m, compared to the EUR 216.5m/215.2m Evli/consensus estimates. Denmark’s top line was particularly soft, while Sweden and Norway advanced.
- EBIT was EUR 0.4m vs the EUR 3.6m/3.2m Evli/consensus estimates. Operative EBITA amounted to EUR 0.5m, compared to our EUR 3.7m estimate. Inflation was the main culprit for the weak numbers, however elevated sick-leave rates due to the pandemic as well as the late arrival of spring also contributed. Eltel has secured agreements with most of its customers to recover parts of the cost increases, but the company will not be able to recover the costs in full.
- Finnish profitability remained a bright spot in Q2 despite a six-week strike among ICT personnel. Swedish results continued to improve, while Norway and Denmark faced setbacks, the latter especially so.
- Eltel removed guidance in connection with the Q1 report.