Slight sales miss, but profitability in line
Eltel delivered weaker sales than expected at EUR 210m (-5% vs ABGSCe of EUR 221m), down -14% y-o-y, which was anticipated due to recent divestments, the loss of two larger contracts included in the comparable period and a continued negative impact from Covid-19. The latter resulted in lower customer activity, a lack of materials, and increased prices. Despite the sales miss, Eltel managed to generate an adj. EBITA in line with estimates at EUR 4.4m (-2% vs. ABGSCe) and an adj. EBITA margin of 2.1% (1.3%) vs. ABGSCe at 2.0%. The margin expansion was driven by operational efficiency and the ongoing phasing out of unprofitable contracts. However, the adj. EBITA margin was slightly boosted since the Denmark segment had a positive one-off of EUR 0.8m related to a partial insourcing of business by a major customer. Net profit was EUR 1.6m (-4% vs. ABGSCe at EUR 1.7m).
LÄS MER
