Q2 2024 Netel Holding AB (publ) Earnings Call Transcript
Key Points
- Netel Holding AB (LTS:0AAB) reported a strong organic growth of 7.7% across all divisions.
- The company has a growing order backlog of SEK4.2 billion, indicating future revenue potential.
- Infraservices division showed significant growth with a 12.8% increase in organic growth and an EBITDA margin of 7.6%.
- Netel Holding AB (LTS:0AAB) signed a new three-year frame agreement with Telenor, expanding their telecom operations in Norway.
- The company is focusing on sustainability initiatives, including submitting an application for SBTi targets, which could enhance their market position.
- Adjusted EBITDA was impacted by low volumes in the telecom sector in the UK, Germany, and Sweden.
- The company experienced a slow start in the beginning of the quarter, affecting overall performance.
- Telecom division's EBITDA margin was lower at 2.2%, indicating room for improvement.
- The leverage ratio is slightly above the target level, standing at 2.8 times compared to the target of below 2.5.
- Seasonality affects cash flow, with significant capital needed in the operations during ramp-up periods, impacting liquidity.
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Welcome to our presentation of quarter two. My name is Jeanette Reuterskiöld, and I'm president and CEO of Netel. With me today, I have Fredrik Helenius, our CFO.
As part of our drive for renewal and innovation I'm proud to present our brand facelift, which also includes a new logo. The change is not just a visual update but a strategic move that clarifies our role in society and our vision for the future. With the new visual identity, we want to convey how Netel connects the world.
By building a modernized and critical infrastructure in Northern Europe, we are a driving force in creating a more connected and sustainable future. The brand lift is one important piece of the puzzle in the overall picture of Netel. It is a strategic initiative to develop Netel as a stronger and more sustainable company.
In the beginning of the year, we changed our organization from country-wide to division: infraservices, power, and telecom. It had already given
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