Webstep (WSTEP) Q3 2024 earnings summary

Executive summary

• Revenue grew 2.4% year-over-year to 189.4 MNOK in Q3 2024, with EBIT margin improving to 5.7% from 2.7% last year.

• Net profit reached 7.0 MNOK, up 160% year-over-year, and EPS increased to NOK 0.25.

• Divestment of Swedish operations completed in July, focusing the business solely on Norway; proceeds partly used for share buyback in October.

• New CFO Henning Hesjedal appointed, joining by April 2025.

• High activity in the energy sector drove regional growth, while Oslo saw softer demand and increased competition.

Financial highlights

• EBITDA rose to 15.7 MNOK (8.3% margin), up from 9.5 MNOK (5.1%) in Q3 2023.

• Net free cash flow was -19.2 MNOK in Q3, improved from -26.2 MNOK; YTD net free cash flow was 11.7 MNOK.

• Equity ratio improved to 56.6% from 50.1% year-over-year.

• Q3 net operating cash flow: negative NOK 18.5 million, improved from negative NOK 24.8 million.

• Dividend payment of NOK 27.8 million YTD.

Outlook and guidance

• Digitalisation, energy transition, and AI are strong market drivers.

• Market activity is mixed: strong in energy sector, moderate elsewhere, especially Oslo.

• Full-year cost reduction program expected to yield at least NOK 18 million in savings.

• Focused exclusively on Norwegian market post-divestment, aiming for EBIT margin above 10% long-term.

• Focus on operational efficiency and talent attraction.