Eltel: Strong performance in a small quarter - ABG
Q1 adj. EBITA EUR +0.9m, strong result given seasonality We raise '25e-'27e EBITA by EUR 3-2m Capital distribution may become relevant again as debt trends down
ANNONS
A strong result, given seasonality
Eltel reported net sales of EUR 170m (-2% vs. ABGSCe), down 4% y-o-y, although organic growth was +1% as the decline was driven by the divestment of the Polish high voltage business. Adj. EBITA amounted to EUR +0.9m (ABGSCe EUR -1.7, EUR -4.0m in Q1'24), for a margin of 0.5% (ABGSCe -1.0%). Considering that Q1 is typically the trough quarter for profitability, often with negative EBITA, we consider the Q1 numbers to be strong in this context. Also, we find it encouraging that all segments except Norway are contributing to the y-o-y EBITA lift. Lease adj. net debt came down to EUR 110m (EUR 120m in Q4'24), for a net debt/EBITDA of 2.2x (2.7x in Q4'24), which is the lowest level since 2015.
