Summary of the interim period, January-March 2025
- Net sales SEK 880 million (716), an increase of 23%
- Recurring revenues SEK 786 million (616), an increase of 28%
- EBITA SEK 220 million (220), unchanged
- EBITA margin 25% (31)
- Operating profit SEK 153 million (153), unchanged
- Operating margin 17% (21)
- Earnings per share before dilution SEK 2.09 (2.27), a decrease of 8%
- Cash flow from operating activities SEK 757 million (694)
- Acquisition of Intergrip.
Our offering continues to contribute to security and stability
The beginning of 2025 has been marked by uncertainty in the world, and the development we are currently witnessing is further contributing to this. At the start of the new year, we had hopes and indications that new sales and investment willingness would return. We can conclude that there is still a mixed picture where some customer segments are more in a waiting position while other segments are unaffected and performing well. Against this background, our offering of business-critical software and a business model with a high proportion of recurring revenue contributes to security and stability in both earnings and long-term development. We develop and deliver software primarily for local and regional needs with resources that are equally local - something that customers have appreciated over the years and perhaps even more now. In both the short and medium term, Vitec is very limitedly affected by external factors, but we are of course closely monitoring the development.
Total revenue for the first quarter amounted to 880 million SEK, an increase of 23%. Our recurring revenue accounted for 786 million SEK, of which subscription-based revenue accounted for 613 million SEK and transaction-based revenue for 173 million SEK. Other revenue decreased slightly, primarily service revenue, which decreased by 8 million SEK. The change in the revenue mix, where revenue with lower gross margins increased more and service revenue decreased, negatively affected the margins. Parts of this shift are a result of us offering our customers additional services, which make us an even more complete supplier and further strengthen our customer relationship. The result at the EBITA level was unchanged at 220 million SEK, while the margin decreased to 25% compared to 31% last year. Operating profit and the period's result were further affected by an increased non-cash net of activations and planned depreciation, which amounted to -25 million SEK compared to -6 million SEK in the same period last year. Adjusted for this, operating profit instead increased by 19 million SEK, which in a good way represents how we operationally follow our business units.
Cash flow from operating activities increased to 757 million SEK compared to 694 million SEK last year. The first quarter is when most of our prepaid subscription revenue is received. This, together with the renegotiation of our credit agreements during the quarter and the successful issuance of our first bond, means that our readiness for acquisitions is good both now and in the future. The issuance was met with very strong demand from investors.
In addition to the increased credit space for future acquisitions, it is also a step in diversifying the company's financing sources.
In January, the Dutch company Intergrip was acquired, whose platform supports the continuous learning line and monitors students' transition to further education. A good example of both business-critical and socially critical benefits.
Now I look forward to the annual general meeting held in Umeå on April 29, which also seriously starts our 40th anniversary. I warmly welcome all shareholders!
Olle Backman, CEO and President,
Vitec Software Group
For more information, please contact
Olle Backman, CEO and President, Vitec Software Group AB (publ)
olle.backman@vitecsoftware.com, +46 70 632 89 93
Patrik Fransson, Head of Investor Relations, Vitec Software Group AB (publ),
patrik.fransson@vitecsoftware.com, +46 76 942 85 97
About Vitec Software Group
Vitec is a leading provider of Vertical Software and has its origin and headquarters in Umeå, Sweden. Our products are developed to meet specific needs within various niche markets in society. The expertise of our employees, combined with our shared corporate culture and business model, enable continuous improvement and innovation. We grow through the successes of our companies, as well as through acquisitions. Everything we do is based on a long-term perspective. Because we are to rely on - today and tomorrow. Vitec has 1,660 employees, is listed on Nasdaq Stockholm and had net sales of SEK 3,334 million in 2024. Read more at vitecsoftware.com.
This information is information that Vitec Software Group is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-04-23 08:00 CEST.
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Olle Backman
