Eltel - Profitability as expected
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).