Eltel renewed its frame agreement with Elisa in Finland

Eltel announced on Monday that it had renegotiated the price and commercial terms in an open-ended contract, with a frame agreement for the coming two years, effective immediately. Within the contract, Eltel will provide end-to-end solutions, covering all aspects of mobile and fixed network operations across Finland for a leading Finnish telecommunications company, Elisa. This includes network planning, construction, installation and maintenance. The estimated value of the contract is approximately 62 MEUR.

Spread roughly evenly on an annual basis, the agreement is relatively small for Eltel (2024e revenue 833 MEUR, 4% of the group’s sales). On the other hand, it is important for Finland’s country unit (2023 revenue 359 MEUR) and the new price and commercial terms could support Eltel’s profitability in Communication in Finland. Furthermore, the renewal of the frame agreement is important, since Elisa is one of the major customers in Communication in Finland. We believe the estimated value of the contract is quite well in line with the previous agreement and thus, the renewed contract has no direct effects on our forecasts or view of the company. The initiation of coverage, where we have taken a more extensive look at the company, can be read here.