Reply (REY) Q2 2024 earnings summary

Executive summary

• Consolidated turnover for H1 2024 reached €1,114.3 million, up 7.3% year-over-year, with all key indicators positive and growth driven by leadership in AI and cloud computing.

• EBITDA for H1 2024 was €180.5 million (16.2% of turnover), up from €154.0 million in H1 2023.

• EBIT for H1 2024 was €146.6 million (13.2% of turnover), compared to €123.7 million in H1 2023.

• Net income attributable to the parent company was €99.9 million, up from €78.5 million in H1 2023; net income for H1 2024 was also reported as €101.5 million, up from €79.9 million in H1 2023.

• Significant development in main business offerings, with increased demand for AI-integrated solutions.

Financial highlights

• Revenue increased 7.3% year-over-year to €1,114.3 million in H1 2024.

• EBITDA margin improved to 16.2% from 14.8% in H1 2023.

• EBIT margin rose to 13.2% from 11.9% in H1 2023.

• Net financial position was positive at €234.8 million as of June 30, 2024, up from €204.9 million at year-end 2023.

• Q2 2024 revenues were €560.0 million, up 8.0% year-over-year; Q2 EBITDA was €93.2 million.

Outlook and guidance

• Positive trend in revenue and profitability expected to continue, supported by strong demand for AI-integrated solutions and digital transformation.

• Main challenge is guiding the spread of AI while managing associated risks.

• Company positions itself as a key technological partner for clients in the digital economy.

• Focus remains on leveraging AI and cloud expertise to support digital transformation for clients.

• Anticipates continued growth by guiding clients through AI adoption and digital economy shifts.