Reply (REY) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 reached €1,666.9 million, up 7.7% year-over-year, with strong growth in both revenue and margins.

• EBITDA grew 16.8% to €275.5 million, representing 16.5% of revenues, with margin improving by 1.3pp.

• EBIT increased 19.4% to €224.2 million, or 13.4% of revenues, and EBT rose 26.8% to €216.0 million.

• Net financial position improved to €312.6 million as of September 30, 2024, reflecting strong cash generation.

• The company continues to invest in artificial intelligence, with all group companies now offering AI-related services.

Financial highlights

• Q3 2024 revenue was €552.6 million, up from €509.1 million in Q3 2023.

• Q3 EBITDA was €95.0 million (17.2% margin), with EBIT at €77.5 million and EBT at €69.7 million.

• Personnel expenses increased due to business growth and a rise in headcount to 15,353 employees.

• Net financial position improved to €312.6 million from €204.9 million at year-end 2023.

• Operating costs for the nine months were €1,391.4 million, 83.5% of revenues.

Outlook and guidance

• Management expresses confidence in future performance, citing financial solidity, strong results, and ongoing investments in new technologies and AI.

• The company aims to strengthen its position as a high-tech player supporting digital transformation.

• Continuous investment in new technologies and AI integration is emphasized as a strategic focus.