Eltel Group: Full-year January–December report 2021

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October–December 2021

  • Net sales EUR 226.3 million (229.2). Total growth -1.2% and organic growth1) in segments -3.1%
  • Operative EBITA2) EUR 7.0 million (4.0) and operative EBITA margin 3.1% (1.7)
  • Operative EBITA2) in segments EUR 7.3 million (6.0) and operative EBITA margin in segments 3.6% (2.9)
  • Items affecting comparability EUR 0.0 million (-5.7)
  • Operating result (EBIT) EUR 6.9 million (-1.9) and EBIT margin 3.1% (-0.8)
  • Net result EUR 4.1 million (-7.0)
  • Earnings per share EUR 0.02 (-0.05), basic and diluted
  • Cash flow from operating activities EUR 33.7 million (51.2)

January–December 2021

  • Net sales EUR 812.6 million (938.0). Total growth -13.4% and organic growth1) in segments -11.9%
  • Operative EBITA2) EUR 14.8 million (11.4) and operative EBITA margin 1.8% (1.2)
  • Operative EBITA2) in segments EUR 24.2 million (22.9) and operative EBITA margin in segments 3.3% (2.8)
  • Items affecting comparability EUR -0.1 million (14.1) from divestment of businesses
  • Operating result (EBIT) EUR 14.5 million (24.8) and EBIT margin 1.8% (2.6)
  • Net result EUR 4.9 million (5.3)
  • Earnings per share EUR 0.03 (0.03), basic and diluted
  • Cash flow from operating activities EUR 22.3 million (49.4)
  • Net debt, excluding leasing liabilities3) EUR 69.2 million (67.4)

Significant events during and after the reporting period

  • On 19 November 2021, it was announced that Eltel Finland signed two agreements with OX2 to build transmission lines for a wind farm. The contracts have a combined value of about EUR 22 million.
  • On 17 December 2021, it was announced that Eltel Denmark signed a frame agreement with Banedanmark regarding consultancy and infrastructure design. The agreement is worth about EUR 41 million.
  • On 17 January 2022, Eltel completed a new financing agreement with banks comprising a EUR 35 million term loan and EUR 90 million revolving credit facility.
  • After the reporting period, Eltel signed two contracts of significance to a combined value up to about EUR 48 million. See page 13 for more information.
  • On 16 February 2022 it was announced that Håkan Dahlström has been appointed new President and CEO of Eltel AB as per 1 September 2022.

Financial guidance

Eltel expects the full-year 2022 operative EBITA margin to increase compared to 2021.


Key figures

EUR million

Oct-Dec 2021

Oct-Dec 2020

Jan-Dec 2021

Jan-Dec 2020

Net sales





Net sales growth, %





Operative EBITA2)





Operative EBITA margin, %





Operative EBITA2), segments





Operative EBITA margin, %, segments





Operating result (EBIT)





Return on operative capital employed (ROCE), %





Net working capital





Net debt3)





Net debt





Number of employees, end of period





1) Adjusted for divested operations and currency effects. 

2) Eltel follows the profitability of segments with Operative EBITA. Please see page 24 for definitions of the key ratios.

3) Refers to net debt excluding IFRS 16 leasing liabilities, as defined in the 2021 financing agreement. See page 12 for calculation and page 24 for definition.


Comments by the CEO

Our fourth quarter performance improved from last year, with operative EBITA reaching EUR 7.0 million (4.0), a margin of 3.1% (1.7). Net sales remained on last year’s level, indicating that we have reached our new base line for growth in the Nordics. We are encouraged by this result, especially as it came amidst the latest wave of the COVID-19 pandemic, which started to peak in December and has caused record- high sick leave rates in all our markets as well as further project postponements. Furthermore, winter came early in the Nordics, with deep frost impacting ground works, such as fibre. At the time of this report the situation remains, enforcing the typical seasonality in our business and thereby negatively affecting the first quarter.


To sum up the year, our full-year operative EBITA was EUR 14.8 million (11.4) and the margin improved to 1.8% (1.2) despite lower net sales and ongoing challenges in the Polish High Voltage business.


Year over year we were in line with net debt. Net working capital remained on a good level at EUR -16.0 million (-25.1) despite the discontinuation of various COVID-19 support mechanisms during 2021. The return on operative capital employed clearly improved to 23.6% (13.0%).


Throughout the year, Finland continued on its stable path with increased profitability. With healthy demand in fibre, 5G and power transmission, Finland is well positioned for a solid performance also in 2022. The power distribution market is likely to see reduced investments due to new regulations.


During the second half of 2021, Sweden improved results year over year. Supported by newly started smart metering projects and growth in Communication, Sweden reversed the down turn in net sales during the fourth quarter 2021, and we see positive signs for the turnaround continuing.


Year 2021 was slower than usual for Norway. During 2022 we expect that fibre volumes will pick up after a year tainted by project postponements and reduced customer investments, largely due to the pandemic.


In Q2 2021, Denmark was hit by partial insourcing of an agreement by a major customer, leading to a significant reduction in net sales. However, the year was concluded by Eltel Denmark signing a multi-year frame agreement with Banedanmark for consultancy and infrastructure design, which will help Denmark to re-enter the growth path.


In High Voltage Poland, we closed several large, old projects during the year, which allows us to go into 2022 with lower risk in our project portfolio and reduced level of net working capital. However, losses in Poland were still high. Work is ongoing to make the business profitable again while we continue to look at strategic options. We believe Smart Grids Germany will continue to deliver healthy margins and are pleased to note that all Power Transmission International projects are operationally completed.


Our core markets are healthy, and Eltel continues to be a leader in the communication sector throughout the Nordics and a market leader in the Finnish power sector. 5G and fibre are the main drivers of the communication market, as well as work to dismantle 3G and copper networks. In power, there is a clear demand to upgrade and modernise power grids to meet an increasing demand for renewable energy sources.


Concluding 2021 also concludes the Operational Excellence phase of our strategy. Improvements have been made in all parts of the business, and transformed Eltel into a financially stable company with a Nordic focus and country-based operations. With an ambition to be the industry leader, we have made significant progress on sustainability with improved safety performance, commitment to the Science Based Targets initiative and improved score on the CDP Climate Change. This provides a good platform for the next phase, aiming at Sustainable Profitable Growth. Similarly, our progress so far supports the financial guidance for 2022, whereby we anticipate our operative EBITA margin to improve from 2021.


I am grateful to all our employees for their efforts during the year, and to our customers, shareholders and other stakeholders for good collaboration.


Casimir Lindholm, President & CEO

For further information, please contact:
Saila Miettinen-Lähde, CFO
Phone: +358 40 548 3695, saila.miettinen-lahde@eltelnetworks.com

Elin Otter, Director, Communications and Investor Relations

Phone: +46 72 59 54 692, 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 17 February 2022.

About Eltel
Eltel is a leading Nordic field service provider for communication and power networks. We deliver a comprehensive range of solutions – from maintenance and upgrade services to project delivery. This includes design, planning, building, installing and securing the operation of networks for a more sustainable and connected world today and for future generations. In 2021, Eltel had annual sales of EUR 812.6 million. The total number of employees currently stands at around 5,000. Eltel AB is listed on Nasdaq Stockholm.