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Analyst Comment

Eltel signs three-year frame agreement with Telia in Finland

By Aapeli PursimoAnalyst
Eltel

Eltel announced on Friday that it has signed a three-year continuation of an existing framework agreement with Telia in Finland. The contract is worth approximately 70 MEUR and covers a wide range of service packages, including the construction, maintenance and fault repair of fixed and mobile networks, as well as customer deliveries in Finland. The new contract will become effective on April 1, 2025. It also includes an option for an additional year.

Spread roughly evenly on an annual basis, the agreement is relatively small for Eltel (3% of 2024e revenue 829 MEUR). On the other hand, it is important for the Finnish country unit (2024e revenue 359 MEUR) as it brings significant volume for the coming years. Given the background (continuation agreement), the framework agreement has no direct impact on our forecasts or view on the company.

Eltel

6.38SEK20.12.2024, 18.00
7.20SEKTarget price
Reduce
Recommendation updated:01.11.2024

Eltel operates in the telecommunications and electricity industries and offers services in infrastructure for networks and electricity. The company's services include installation, maintenance and project management for telecommunications and electricity networks. The business is aimed at companies and public institutions in Europe. Eltel was founded in 2001 and is headquartered in Stockholm, Sweden.

Read more on company page

Key Estimate Figures01.11.2024

202324e25e
Revenue850.2828.9843.8
growth-%3.2 %-2.5 %1.8 %
EBIT (adj.)1.710.120.3
EBIT-% (adj.)0.2 %1.2 %2.4 %
EPS (adj.)-0.02-0.050.01
Dividend0.000.000.00
Dividend %
P/E (adj.)--54.0
EV/EBITDA8.515.75.2
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