Relatech (RLT) Q2 2024 earnings summary

Executive summary

• Consolidated revenues for H1 2024 reached €46.6M, down 3% year-over-year; EBITDA Adjusted was €7.9M (16% of production value), and net profit attributable to the group was €0.92M.

• Net financial position showed net debt of €22.4M at June 30, 2024, slightly higher than year-end 2023, mainly due to M&A and non-recurring outflows.

• The group continued to invest in R&D, digital platforms, and AI, launching the new RexAI technology and expanding its DESK Membership offering.

• Significant corporate events included the acquisition of Dialog Sistemi, the entry of Gemini BidCo as majority shareholder, and the launch of a public tender offer for delisting.

• International revenues accounted for 27% of sales, and recurring revenue increased by 7%, now representing 42% of total sales.

Financial highlights

• Revenues: €46.6M (H1 2024), -3% vs. H1 2023.

• EBITDA Adjusted: €7.9M (16% of production value), -2% year-over-year.

• Net profit attributable to the group: €0.92M, -7% year-over-year.

• Net financial debt: €22.4M at June 30, 2024, up from €22M at year-end 2023.

• M&A and extraordinary cash outflows totaled €4.3M in H1 2024, including the Dialog Sistemi acquisition.

Outlook and guidance

• Management expects growth in 2024, supported by easing inflation and interest rates, with digital market CAGR of 3.9% (2023–2027) and digital enablers expected to grow at 11.1% annually.

• Ongoing investments in AI, Cybersecurity, and Cloud are expected to strengthen market position and support growth.

• The group is well positioned to benefit from ongoing digital transformation trends and public investments (PNRR) in Italy.