Qlosr Group (QLOSR) Q3 2024 earnings summary

Executive summary

• Q3 2024 results were in line with the previous year, with increased recurring subscription revenues and reduced costs improving margins in subscription services.

• The quarter was marked by preparations for the planned divestment of all significant subsidiaries to ECIT AS, expected to close in December 2024.

• Cost-saving programs led to a 9.1% reduction in personnel and external costs, positively impacting profitability.

Financial highlights

• Operating revenues decreased by 5.7% to 124.8 MSEK, mainly due to a one-time income in Q3 2023; net sales fell 1.4% to 124.2 MSEK.

• Subscription revenues grew 4.2% to 69.9 MSEK, all organic; contract value for subscription services rose 5.5% to 417.2 MSEK.

• Gross profit dropped 16.9% to 47.0 MSEK; gross margin was 37.7% (down from 42.8%), affected by last year’s one-off income.

• EBITDA was 5.1 MSEK (4.1% margin), down from 10.5 MSEK (7.9%) due to the prior year’s one-off.

• Adjusted net result for the quarter was -5.0 MSEK (3.1 MSEK); EPS was -0.32 SEK (-0.29 SEK).

• Cash flow from operations after working capital changes was 16.8 MSEK (6.6 MSEK); cash and bank at period end was 13.0 MSEK.

Outlook and guidance

• Focus remains on completing the divestment to ECIT AS and strengthening the remaining business to maximize shareholder value.

• No dividend is expected in the medium term as profits and cash flow are prioritized for organic growth and acquisitions.