Stock Exchange Bulletin
Interim Report
October 24, 2024, at 8.00 am
Twofold third quarter: Profitability improved significantly, revenue fell below comparison period
July-September
- Comparable revenue totaled EUR 11.4 million (12.2) and decreased by 6.5 percent. Revenue totaled EUR 11.4 million (12.2) and decreased by 6.5 percent
- Comparable EBITDA was EUR 1.2 million (-0.1) and EBITDA EUR 0.9 million (0.5). Comparable EBITDA percent was 10.3 (-1.1)
- Comparable operating result was EUR 0.6 million (-0.8) and operating result EUR 0.3 million
(-0.7). Comparable operating result percent was 5.4 (-6.7) - Earnings per share was EUR -0.03 (-0.05)
January-September
- Comparable revenue totaled EUR 38.4 million (39.9) and decreased by 3.9 percent. Revenue totaled EUR 38.4 million (43.4) and decreased by 11.5 percent
- Comparable EBITDA was 2.1 EUR million (-1.3) and EBITDA EUR 1.9 million (9.5). Comparable EBITDA percent was 5.6 (-3.2)
- Comparable operating result was EUR 0.4 million (-3.5) and operating result EUR 0.1 million
(5.5). Comparable operating result percent was 1.0 (-8.9) - Earnings per share was EUR -0.09 (0.15)
- Solteq Group's equity ratio was 28.9 percent (36.8)
- Net cash flow from operating activities was EUR 0.8 million (-5.3)
- The company expects the comparable revenue to diminish relative to the comparison period and operating result to be positive. The comparable revenue was EUR 54,183 thousand for the financial year 2023
Key figures
| 7-9/2024 | 7-9/2023 | Change % | 1-9/2024 | 1-9/2023 | Change % | 1-12/2023 | Rolling 12mos | |||
| Revenue, TEUR | 11,424 | 12,217 | -6.5 | 38,394 | 43,390 | -11.5 | 57,655 | 52,659 | ||
| Comparable revenue, TEUR | 11,424 | 12,217 | -6.5 | 38,394 | 39,938 | -3.9 | 54,183 | 52,639 | ||
| EBITDA, TEUR | 886 | 538 | 64.6 | 1,860 | 9,517 | -80.5 | 8,695 | 1,039 | ||
| Comparable EBITDA, TEUR | 1,175 | -135 | 968.8 | 2,149 | -1,284 | 267.4 | -1,662 | 1,771 | ||
| Operating result, TEUR | 295 | -697 | 142.3 | 51 | 5,549 | -99.1 | -3,541 | -9,040 | ||
| Comparable operating result, TEUR | 614 | -821 | 174.8 | 370 | -3,549 | 110.4 | -4,575 | -656 | ||
| Result for the financial period, TEUR | -591 | -975 | 39.4 | -1,802 | 2,902 | -162.1 | -5,380 | -10,083 | ||
| Earnings per share, EUR | -0.03 | -0.05 | 39.4 | -0.09 | 0.15 | -162.1 | -0.28 | -0.52 | ||
| Operating result, % | 2.6 | -5.7 | 0.1 | 12.8 | -6.1 | -17.2 | ||||
| Comparable operating result, % | 5.4 | -6.7 | 1.0 | -8.9 | -8.4 | -1.2 | ||||
| Equity ratio, % | 28.9 | 36.8 | 30.1 | 33.3 | ||||||
CEO Aarne Aktan: Twofold third quarter: Profitability improved significantly, revenue fell below comparison period
The company's third quarter brought in, as expected, strong improvement in profitability but the revenue development was weaker than expected. The efficiency measures in the previous quarters yielded a comparable operating result of EUR 0.6 million, which was EUR 1.4 million better than in the comparison period. However, the comparable revenue in the review period, EUR 11.4 million, decreased by 6.5 percent relative to the comparison period. A slow recovery in customer demand caused a weaker revenue development than expected.
The Retail & Commerce segment improved its profitability well, but the revenue development was declining. This was driven by postponed decision-making in several key customer acquisition opportunities, resulting in a shortfall in anticipated revenue. During the review period, comparable revenue was EUR 8.5 million, down by 7.5 percent relative to the comparison period. The comparable operating result was EUR 0.7 million, up by 177 percent relative to the comparison period. The improvement was EUR 0.5 million.
The Utilities segment performed as expected and is on the verge of achieving profitable growth. The turnaround in profitability progressed well: the segment's comparable operating profit was EUR -0.1 million, improving by EUR 1.0 million relative to the comparison period. The enhanced profitability results from the improved quality of products and efficiency of operations.
The company's financing was agreed during the review period for the next 24 months. The maturity date of the EUR 23 million notes was extended until 1.10.2026, and the coupon rate was increased from 6.0 percent to 10.0 percent.
The revenue downturn is caused by subdued customer demand, particularly in Retail & Commerce, leading to a more cautious outlook for the remainder of the financial year. The long-term market outlook for the Retail & Commerce segment is expected to remain moderate, and demand to recover as the markets stabilize. The long-term market outlook for the Utilities segment is expected to remain good and provide opportunities for profitable growth.
Profit Guidance 2024
The company expects the comparable revenue to diminish relative to the comparison period and operating result to be positive. The comparable revenue was EUR 54,183 thousand for the financial year 2023.
Financial reporting
The Interim Report has been prepared in accordance with the recognition and valuation principles of IFRS standards and using IAS 34 and the same accounting policies as the Financial Statements 2023. The new IFRS standards, taken into use on January 1, 2024, do not have a significant impact on the Group's Interim Report. The information presented in the Interim Report has not been audited.
Attachments
Solteq Plc's Interim Report January 1 - September 30, 2024
Further Information
CEO Aarne Aktan
Tel: +358 40 342 4440
E-mail: aarne.aktan@solteq.com
CFO, General Counsel Mikko Sairanen
Tel: +358 50 567 3421
E-mail: mikko.sairanen@solteq.com
Distribution
Nasdaq Helsinki
Key media
www.solteq.com
Solteq in brief
Solteq is a Nordic software solution and expert service provider specializing in retail and energy sectors and needs related to e-commerce. The company employs over 400 professionals and has offices in Finland, Sweden, Norway, Denmark, Poland, and the UK.
