Vitec Software Group Interim report January–June 2024
SUMMARY OF INTERIM PERIOD, APRIL–JUNE 2024
- Net sales SEK 882 million (724), an increase of 22%
- Recurring revenues SEK 775 million (612), an increase of 27%
- EBITA SEK 264 million (226), an increase of 17%
- EBITA margin 30% (31)
- Operating profit SEK 196 million (164), an increase of 20%
- Operating margin 22% (23)
- Earnings per share before dilution SEK 3.18 (2.59)
- Cash flow from operating activities SEK 89 million (80)
- Acquisition of Bidtheatre
SUMMARY OF INTERIM PERIOD, JANUARY–JUNE 2024
- Net sales SEK 1,598 million (1,336), an increase of 20%
- Recurring revenues SEK 1,391 million (1,121), an increase of 24%
- EBITA SEK 484 million (412), an increase of 18%
- EBITA margin 30% (31)
- Operating profit SEK 349 million (286), an increase of 22%
- Operating margin 22% (21)
- Earnings per share before dilution SEK 5.46 (4.66)
- Cash flow from operating activities SEK 783 million (569)
Continued growth with robust margins
Vitec’s growth strategy combines both organic expansion and strategic acquisitions. For the second quarter of 2024, we achieved a sales increase of 22%, contributing to a 20% growth for the first half of the year, aligning with our ten-year average annual growth rate of 22%.
Our focus on organic growth is underscored by our analysis of pro forma rolling 12-month revenue, a metric that reflects our current annual rate and growth. Our business units, which develop and offer niche business-critical software, operate in stable markets characterized by long-term customer relationships.
As we entered 2024, our customer base remained steady, with new sales showing caution but demonstrating strong figures in additional sales to existing customers.
In this quarter, our business unit Enova, providing balancing services in the Dutch energy grid, has significantly increased volumes. This surge is driven by the daily market needs, with the integration of more renewable energy sources into the energy mix necessitating greater balancing power. The high proportion of renewables during the summer has resulted in substantial volumes, benefiting our customers and is clearly reflected in the rise in transaction-based recurring revenues.
For the period, our EBITA increased by 17% to SEK 264 million, yielding a margin of 30%. The cash flow from operating activities also showed an improvement compared to the same period last year, with significant gains in the first half of the year. This, coupled with our healthy debt levels and available credit, ensures our preparedness for further acquisitions.
In the second quarter, we acquired Bidtheatre, a specialized vertical software company primarily supporting media agencies in Sweden. In early July, we announced the acquisition of the Swedish software company Taxiteknik, which provides innovative solutions for the taxi industry. These acquisitions bring the total to three so far this year, with more opportunities under continuous evaluation. We have also consolidated a couple of business units to optimize organizational efficiency and customer offering, hence we now present 40 business units.
I extend my best wishes for a pleasant summer to all our customers, employees, and stakeholders.
Olle Backman, CEO and President
Vitec Software Group
