Q4 2024 Netel Holding AB (publ) Earnings Call Transcript
Key Points
- Netel Holding AB (LTS:0AAB) reported a 1.5% increase in net sales for Q4, driven by strong performance in the power sector in Norway and telecom in Sweden and Germany.
- The company achieved an all-time high order backlog of SEK4 billion for continuing operations, indicating strong future demand.
- Netel Holding AB (LTS:0AAB) has successfully secured new contracts, including a significant framework agreement with Elvia in Norway worth SEK320 million.
- The company is focusing on divesting its loss-making operations in Finland to concentrate on more profitable markets in Sweden, Norway, Germany, and the UK.
- Netel Holding AB (LTS:0AAB) has implemented a new organizational structure and digital tools to improve resource allocation and operational efficiency.
- The company's profitability was impacted by lower margins in the telecom and infra services sectors, with an adjusted EBITDA margin of 5.2%, down from 5.7% last year.
- Netel Holding AB (LTS:0AAB) reported a net loss after tax of minus SEK105 million from its discontinued Finnish operations.
- The infra services division faced challenges with less profitable projects and high competition, resulting in a significant drop in EBITDA margin from 11.7% to 5.9%.
- The UK market remains challenging for Netel Holding AB (LTS:0AAB), with lower volumes and a need to adjust its strategy and customer base.
- The company's net leverage ratio is above its target, at 2.8 times compared to the desired 2.5 times, indicating a need for improved financial stability.
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Thank you for Q4 results, my name is Jeanette Reuterskiold and I'm President and CEO of Netel Holding AB (publ) with me today I have Fredrik Helenius our CFO in the last quarter of the year, net sales grew 1.5% driven by good development in power in Norway, as well as telecom in Sweden and Germany.
When it comes to profitability in the quarter, power had a strong ending of the year with improved profitability and an inhibited margin of 11.6%.
However, we saw a decrease in the quarter infra-Services and Telecom which impacted the overall profitability. And Fredrik Helenius will later go into details of that.
Even though the underlying market trends are strong, our performance can of course fluctuate between the quarters because we are a product driven business. But the timing of the project's completion affects our short-term development.
The order backlog continued to develop favorably, and we see a growth of SEK600 million sec in the
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