Q1 2025 Eltel AB Earnings Call Transcript
Key Points
- Eltel AB (FRA:E5E) reported its strongest first quarter in many years, with a significant improvement in adjusted EBITA, marking the seventh consecutive quarter of profitability improvement.
- The company achieved a notable improvement in cash flow, with a EUR22 million increase compared to the previous year, contributing to a healthier financial position.
- Sweden showed strong performance with a 6.5% growth in net sales, driven by public infrastructure and solar investments, marking the 12th consecutive quarter of profitability improvement.
- The newly established Denmark and Germany segment reported significant profitability improvement, with adjusted EBITA nearly doubling to 7.9%, the highest in the Eltel Group.
- Eltel AB (FRA:E5E) has successfully broadened its customer base, particularly in public infrastructure, which has contributed to a solid order book of EUR1.3 billion.
- Net sales declined by almost 4% due to the impact of last year's divestment of the high voltage business in Poland.
- Norway remains a challenging market for Eltel AB (FRA:E5E), with continued declines in net sales and unprofitable operations, resulting in a negative adjusted EBITA of EUR1.8 million.
- The company faces lower activity levels in communication compared to power, with the exception of the Swedish market.
- Eltel AB (FRA:E5E) has not provided a clear timeline for resuming dividend payouts, as the situation in Norway and other segments still requires improvement.
- The fiber to the home business in Finland is experiencing a reduction in demand, indicating that the peak of the rollout may have been reached in 2024.
Good morning and welcome to this teleconference or web conference where we will present Eltel's first quarter results. My name is Alexandra Karnlund. I am the communications director at Eltel, and here with me today to present the results is our CEO Hakan Dahlstrom and our CFO Tarja Leikas. Warm welcome.
After the presentation, we will open up for questions, and throughout the presentation you can submit questions either via the website or dial in via the phone conference. With that, I'd like to hand over first to you.
Thank you Alexandra. I also welcome from my side to this presentation from Eltel. Eltel, the leading provider of services in the Nordic in the critical infrastructure. It areas as communication and power, and it means that Eltel enables the digitalization and electrification of our society. In many areas This includes mobile communication, fiber network, private network, but also on the power side, high voltage,
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