Webstep (WSTEP) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached 258.3 MNOK, up 3.5% YoY; EBIT at 18.9 MNOK, up 7.4%; net profit rose 8.9% to 13.9 MNOK.

• Sale of Webstep AB (Sweden) completed in July, generating NOK 51 million and sharpening focus on the Norwegian market.

• New CEO Kristine Lund appointed in May; interim CFO and new Stavanger general manager also named.

• Group figures include discontinued Webstep AB business; only Norwegian operations will be consolidated going forward.

Financial highlights

• Q2 2024 revenue: 258.3 MNOK (+3.5% YoY); EBIT: 18.9 MNOK (+7.3% YoY); EBIT margin: 7.3% (+0.2pts); net profit: 13.9 MNOK; EPS: 0.50 NOK.

• Net free cash flow: 31.3 MNOK (vs. 6.3 MNOK); cash flow from operations: 32.2 MNOK (vs. 7.8 MNOK); cash and deposits: 45.0 MNOK.

• Equity ratio at 51.6% (vs. 54.9% YoY); average FTEs: 527 (down from 559).

• H1 2024 revenues: 520.2 MNOK (down 1.2% YoY); EBIT: 41.1 MNOK (down 4.1%); net profit: 29.9 MNOK (down 5.3%).

Outlook and guidance

• Digitalisation trend remains strong, but market faces lower demand and increased competition.

• Cost reduction program on track, expected to yield at least 21 MNOK in annual savings for 2024.

• Focus on Norwegian market, project teams, and enterprise customers to drive profitability and aim for EBIT margin above 10% long-term.