Netel has grown at an average annual rate of 25.6 per cent between 2010 and 2022. Netel’s strengths are its specialist expertise in the roll-out and project management of critical infrastructure and its decentralised organisation.
Netel’s decentralised organisation means that the Group has deep insights into and knowledge about local conditions and regulations, is close to customers and has short decision-making pathways. The ability of subsidiaries to act independently, with the strength of a group, is a competitive advantage.
Clear growth strategy
Through its long-standing customer relationships with leading stakeholders in Northern Europe, Netel has a stable foundation for organic growth. There is an underlying healthy growth driven by the huge need for more capacity and modernisation of infrastructures. At the same time, Netel’s service business is growing at the same pace that the base of executed projects and installations is growing.
Growth through acquisitions
Acquisitions are key part of Netel’s growth strategy. Through acquisitions, Netel will strengthen existing operations and expand into new market segments or countries. The strategy is successful and seven acquisitions were carried out in 2022.
Record-breaking order backlog
At the end of the year, Netel’s order backlog amounted to a record-breaking SEK 3.7 billion.
Leading profitability in the industry
Adjusted EBITDA has grown at an average annual rate of 19.3 per cent between 2010 and 2022. Netel is a profitability leader in the industry due to a successful business model, long-standing customer relationships and stable customer base with the largest network owners in the Nordic region. One of the factors for success is that Netel engages subcontractors for construction and installation.
Asset-light business model
Netel’s operations tie up little capital and investments are low. This asset-light business model means that Netel has a long-term high cash conversion and stable, low capital requirements.
Markets driven by powerful megatrends
Netel operates in markets that are critical to society. These markets are affected by three powerful megatrends: climate change, digitalisation and the need to update the infrastructures.
Strong sustainability focus a key part of success
Netel’s strong sustainability focus and responsibility for the environment and work environment is one of the Group’s factors for success. Netel sets the same high sustainability requirements for its subcontractors as for its own operations.