Netum Group (NETUM) Q3 2024 earnings summary

Executive summary

• Revenue for July–September 2024 rose 17.8% year-over-year to €9.7 million, with organic growth of 3.5%. EBITA margin improved to 14.5% from 5.5% in the prior year.

• For January–September 2024, revenue increased 28.2% year-over-year to €32.5 million, with organic growth of 5.2%. EBITA margin was 11.5%, up from 5.6%.

• Profitability strengthened due to revenue growth and cost structure improvements initiated in 2023.

• Demand in public sector IT services remained strong, while corporate sector demand was soft.

Financial highlights

• July–September 2024 EBITDA was €1.4 million (14.8% of revenue), up from €0.5 million (5.9%).

• Operating profit for the quarter was €0.6 million (6.1% of revenue), compared to a loss of €0.2 million (-2.1%).

• January–September 2024 EBITDA was €3.8 million (11.8% of revenue), up from €1.7 million (6.6%).

• Result for the nine-month period was -€0.1 million (-0.3% of revenue), compared to -€0.7 million (-2.9%).

• Number of employees at period end was 397, down from 424.

Outlook and guidance

• 2024 revenue expected at €45–49 million; comparable EBITA forecast at 8–11% of revenue.

• Public sector IT demand to remain strong, but price competition and slow decision-making present challenges.

• Corporate sector outlook remains weak due to general economic conditions.