Eltel: EBITA margin +0.6pp after divestment - ABG

Q1e a seasonally small quarter
Divests loss-making business, EBITA margin +0.6pp
Share now trading at 10-8x '24e-'25e EV/EBITA


Q1e: seasonally small quarter, we est. EUR -1.0m EBITA

Q1 is a seasonally small quarter for Eltel due to adverse weather effects making installations difficult. We expect the company to report sales of EUR 198m, up 5% y-o-y, and an adj. EBITA of EUR -1.0m (-5.5m). There should still be some improvement y-o-y, given weaker comps for H1'23 and Eltel now having renegotiated several contracts to move on higher costs to customers.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/eltel/Equity-research/2024/4/eltel---ebita-margin-0.6pp-after-divestment/