Eltel - Results below our expectations
Eltel’s Q1 results were below our expectations. Net sales amounted to EUR 182m (Evli 209.9m). Operative EBITA improved y/y to EUR -0.7m (EUR -2.1m in Q1/20) but was also below our expectations. (Evli EUR 1.0m)
- Net sales in Q1 decreased by 23.1% to EUR 182m (EUR 236.6m in Q1/2020) and were below our estimates (Evli EUR 209.9m). Net sales continued to decline partly due to the divestments made last year and partly due to lower activity among customers as a result of COVID-19. Last year’s loss of a major service agreement in Sweden also affected the volumes.
- Operative EBITA improved y/y to EUR -0.7m (EUR -2.1m in Q1/20) but was below our expectations (Evli EUR 1.0m). The operative EBITA margin was -0.4% (-0.9% in Q1/20). Eltel has succeeded in adjusting the organization to meet the volume changes, which has contributed to the improved profitability.
- Operating profit in Q1 amounted to EUR -0.8m (EUR -2.2m in Q1/20, Evli EUR 0.8m).
- Guidance reiterated: Eltel expects the full-year 2021 operational EBITA margin to improve compared to 2020.